The video discusses the advantages of investing across a broad spectrum of municipal credits, highlighting the flexibility it offers in identifying attractive credit opportunities. The credit research team employs a bottom-up approach, considering the broader economic and policy environments impacting various sectors. They conduct comprehensive credit analysis, evaluating operational financials and collateral packages across the rating spectrum, and prefer credits that demonstrate resiliency to external shocks, offering strong bondholder protections and financial flexibility.

Additionally, the video emphasizes the benefits of taking on credit risk in shorter maturities, avoiding the long-term operating risks and potential financial headwinds associated with longer-term bonds. The team focuses on higher-yield sectors such as healthcare, senior living, land deals, and industrial development bonds, sourcing appropriate credits for their short-term bond fund. This approach provides more protection in scenarios where interest rates might rise, leveraging the team’s existing knowledge of various credit structures and sectors, and targeting bonds closer to maturity.