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New York Life Launches Long-Duration Muni ETF to Capture Decade-High Tax-Free Yields

MarketDash Editorial Team
4 hours ago
New York Life Investments is rolling out MMMA, an actively managed municipal bond ETF that goes long on duration to capitalize on tax-exempt yields sitting at their most attractive levels in over a decade.

New York Life Investments is betting that now is the moment to go long on municipal bonds. The firm just launched the NYLI MacKay Muni Allocation ETF (MMMA), an actively managed fund designed to capture higher tax-exempt income at a time when interest rates have pushed muni yields to some of their most attractive levels in more than a decade.

The strategy here isn't subtle. MMMA combines a core allocation to predominantly long-duration, investment-grade municipal bonds with a tactical sleeve in high-yield munis. It's an approach built to balance income generation with calculated risk-taking, and it arrives at a moment when both duration and credit selection actually matter again.

Co-Portfolio Manager Michael Denlinger, who leads the MacKay Shields team managing the fund, argues that current market conditions have opened up a compelling entry point for long-duration municipal strategies. Tax-exempt yields, he notes, are sitting at levels investors haven't seen in over ten years. The idea is straightforward: an active approach lets you lock in higher income today while positioning for potential price appreciation if interest rates start to ease down the road. In a market where duration risk and issuer fundamentals are back in focus, MMMA is designed to navigate both.

This launch extends New York Life's already robust lineup of active municipal bond ETFs. The firm's existing products include the NYLI MacKay Muni Short Duration ETF (MMSD), the NYLI MacKay Muni Insured ETF (MMIN), the NYLI MacKay Muni Intermediate ETF (MMIT), and the NYLI MacKay California Muni Intermediate ETF (MMCA). With MMMA in the mix, the firm now offers a longer-duration option to round out the suite, giving investors more tools to dial in their muni exposure based on their rate outlook and tax situation.

New York Life Investments isn't exactly a boutique operation. As of September 30, the firm oversaw $799.4 billion in assets under management. Its MacKay Municipal Managers division was entrusted with $81.6 billion in municipal bond assets alone, underscoring its role as a heavyweight in active muni investing. Proving, once again, that even boring bonds can make headlines when the yields get interesting enough.

Back to News

New York Life Launches Long-Duration Muni ETF to Capture Decade-High Tax-Free Yields

MarketDash Editorial Team
4 hours ago
New York Life Investments is rolling out MMMA, an actively managed municipal bond ETF that goes long on duration to capitalize on tax-exempt yields sitting at their most attractive levels in over a decade.

New York Life Investments is betting that now is the moment to go long on municipal bonds. The firm just launched the NYLI MacKay Muni Allocation ETF (MMMA), an actively managed fund designed to capture higher tax-exempt income at a time when interest rates have pushed muni yields to some of their most attractive levels in more than a decade.

The strategy here isn't subtle. MMMA combines a core allocation to predominantly long-duration, investment-grade municipal bonds with a tactical sleeve in high-yield munis. It's an approach built to balance income generation with calculated risk-taking, and it arrives at a moment when both duration and credit selection actually matter again.

Co-Portfolio Manager Michael Denlinger, who leads the MacKay Shields team managing the fund, argues that current market conditions have opened up a compelling entry point for long-duration municipal strategies. Tax-exempt yields, he notes, are sitting at levels investors haven't seen in over ten years. The idea is straightforward: an active approach lets you lock in higher income today while positioning for potential price appreciation if interest rates start to ease down the road. In a market where duration risk and issuer fundamentals are back in focus, MMMA is designed to navigate both.

This launch extends New York Life's already robust lineup of active municipal bond ETFs. The firm's existing products include the NYLI MacKay Muni Short Duration ETF (MMSD), the NYLI MacKay Muni Insured ETF (MMIN), the NYLI MacKay Muni Intermediate ETF (MMIT), and the NYLI MacKay California Muni Intermediate ETF (MMCA). With MMMA in the mix, the firm now offers a longer-duration option to round out the suite, giving investors more tools to dial in their muni exposure based on their rate outlook and tax situation.

New York Life Investments isn't exactly a boutique operation. As of September 30, the firm oversaw $799.4 billion in assets under management. Its MacKay Municipal Managers division was entrusted with $81.6 billion in municipal bond assets alone, underscoring its role as a heavyweight in active muni investing. Proving, once again, that even boring bonds can make headlines when the yields get interesting enough.

    New York Life Launches Long-Duration Muni ETF to Capture Decade-High Tax-Free Yields - MarketDash News