NYLI MacKay Muni Intermediate ETF (MMIT)

On our macro desk, we are closely watching how legislative shifts like the 'One Big Beautiful Bill' impact the tax-exempt status of munis. The sell-off early on created a compelling entry point, but sentiment dictates that we must remain hyper-focused on issuers with durable, predictable revenue streams rather than those relying on discretionary budget choices. MMIT's active management approach provides a necessary buffer here, but the broader political landscape demands caution.

Reviewing MMIT from a quantitative risk perspective, the elevated municipal-to-Treasury ratio—sitting roughly 10 basis points higher than usual across the 10-year to 30-year spectrum—presents a clear relative value opportunity. However, looking at the historical calendar performance, including the drawdown in 2022 and recent multi-year figures, downside risk management and liquidity awareness remain vital parameters for our allocation models.

When evaluating fixed-income teams for our portfolio allocations, the People Pillar is paramount. Knowing that MMIT's co-heads have worked together since 1993 gives our committee confidence in their credit analysis, yield curve positioning, and sector rotation strategies. Their ability to leverage long-term relationships with municipal dealers directly translates to execution advantages in a differentiated and technical market structure.