- Background: Grew up in Maplewood, N.J., with interests in math and politics—skills well-suited for municipal bond analysis.
- Education: Columbia High School; Syracuse University, major in finance with accounting concentration.
Career Path
- Early Career: Joined Morgan Stanley in 2002, focused on the front end of the municipal bond curve, later handling longer-term issues.
- Financial Crisis Experience: Learned to analyze distressed muni issues during 2007–09.
- Pimco: Joined in 2012, mentored by veteran muni manager Joe Deane. Returned in 2015 to lead after Deane’s retirement.
- Current Role: Manages ~$72 billion in municipal bond assets at Pimco, including the $4.4 billion Pimco Municipal Bond Fund.
Fund Performance
- 10-Year Annualized Return: 2.75%, about 0.5% above peers.
- 2025 YTD Return (as of Nov 21): 3.86%, top quintile among peers.
- Market Context: Bloomberg Municipal Bond Index returned 4.13% in 2025 vs. 6.72% for U.S. Aggregate Bond Index.
Market Outlook
- Challenges: Weak retail flows, high issuance in early 2025, fears over potential tax changes (“One Big Beautiful Bill”).
- Tailwinds: Fed rate cuts, slowing economic growth supporting bonds.
- Valuation: Muni bonds remain attractive; a well-structured investment-grade muni portfolio can yield ~4% tax-free, equivalent to 6.5% taxable.
Investment Strategy
- Focus: Long-term maturities (15–20 years) for higher yields and roll-down potential.
- Preferred Sectors: Infrastructure (utilities, airports, ports, toll roads), commercial/residential real estate, and tax-exempt mortgage pools.
- Example Holdings:
- Freddie Mac-backed tax-exempt mortgage pools.
- Puerto Rico Cofina Sales Tax bonds (restructured post-bankruptcy, expected to regain investment-grade rating).
Key Insights
- Hammer favors high-quality, resilient municipal bonds over lower-rated or unrated issues.
- Municipal bonds offer tax advantages and relative stability compared to corporate bonds and Treasuries.
- The muni market is vast and complex, with about 50,000 issuers, offering opportunities for strategic, diversified investment.