Episode 144: State of the States with Conning’s Karel Citroen

In this episode of the InsuranceAUM.com Podcast, Stewart Foley, CFA, talks with Karel Citroen, Managing Director and Head of Municipal Credit Research at Conning, about the evolving landscape of municipal bonds. They delve into Conning's annual State of the States report, which ranks states based on 13 credit indicators, revealing how economic trends and demographic shifts influence state credit quality. Karel discusses the key drivers behind their recent decision to revise the state credit outlook from stable to declining, touching on factors like lower tax revenue growth, inflation's impact on sales taxes, and state policy changes.

Karel also highlights the complexities facing states as they navigate evolving population patterns and infrastructure needs. With insights into migration trends, fiscal discipline, and relative value in state credit rankings, this episode provides valuable perspectives for insurance investors managing municipal bond portfolios. Whether you're interested in the credit quality of states or looking for guidance on navigating local government debt, this conversation offers important takeaways.