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Tobacco Bonds Have Flourished This Year

VanEck of VanEck
Tobacco Bonds Have Flourished This Year

Are there other market dynamics that might be positive or negative for the asset class?  Already we’ve seen some $3 billion of tobacco bonds taken out of the high yield portfolios by a refinancing, which has had the impact of raising the prices of the remaining securities in the high yield space, which actually accounts for the strong performance in high yield on a relative basis. Tobacco bonds are one of the largest, most liquid, and highest yielding segments in the municipal bond space (HYD) (ITM) (SMB).