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Market Review & Outlook 4Q18 - Investment Grade: Taxable and Tax-Exempt Fixed Income

> A flight to quality and a widening of spreads hurt investment grade spread product in the fourth quarter, and more volatility is likely in 2019 as global liquidity declines despite new dovishness by the Federal Reserve and moderately stimulative policies in China.
> Investment grade municipal bonds benefited from turmoil in equities markets in the fourth quarter, and higher quality issues outperformed. For the year, returns were modestly positive as supply declined and a shrinking market provided some price support.

z - Cover Image: 4Q18 Market Review - Investment Grade: Taxable and Tax-Exempt Fixed Income