ETF Trends
ETF Trends

In the near term, SNWAM has minimal municipal credit risk from falling crude oil prices.

Furthermore, we agree with the Federal Reserve that the U.S. economy as a whole will benefit from lower crude oil prices.  The table below from the U.S. Bureau of Economic Analysis shows that oil and gas extraction and support activities are a limited contributor of total Real GDP – only 2.25% in 2013.

However, if crude oil prices remain at sub $60 per barrel of crude oil (bbl) for an extended period of time (all of 2015???), there may be clear winners and losers in the municipal credit space.

Read more at Iris.xyz.