FICC Focus Masters of the Muniverse: Inside Muni Strategy With Jason Hannon
Aug 19, 2025
Join Jason Hannon, Head of Municipal Strategy at Wilmington Trust, as he dives into the current dynamics of the municipal bond market. With over 20 years of investment experience, he discusses how record muni issuance is affecting yields and investment strategies. Jason highlights the importance of active management in navigating today's market volatility and the steepening yield curve. He also unveils the hidden benefits of Separately Managed Accounts, clarifying misconceptions and showcasing how they can optimize returns for investors.
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Wilmington Trust's Tech-Led SMA Evolution
- Jason described how technology and SMAs changed Wilmington Trust's muni investment approach since 2019.
- He credited tech and SMA growth for enabling scale without adding staff.
Historic Summer Issuance Pressured Yields
- Summer saw historically high muni issuance that absorbed cashflows and pressured yields.
- Mid-month coupon payments temporarily helped redeploy cash into new deals.
Flows Rotated Toward Investment Grade
- Cashflow trends shifted from high-yield to investment-grade later in the quarter.
- That rotation softened returns in high-yield munis and increased IG demand.