Watch Group CIO Dan Ivascyn discuss the five factors driving value in municipal bonds today.

As the debt ceiling issue plays out in the coming months, this is one of many factors that could create episodes of market volatility, which investors should consider as they allocate capital in 2023.

MORE ON U.S. DEBT CEILING

In our view, there are three compelling reasons why investors may benefit from allocating to agency MBS heading into 2023: attractive valuations; abundant relative value opportunities; and high quality spreads over U.S. Treasuries.

Like most asset markets, credit has not been immune to this year's volatility. But the good news today is that higher-quality yields are attractive again. Learn how investors may benefit from allocating to active fixed income.

As the Fed continues to combat inflation, stock and bond markets are pricing in different recessionary risks - with a richer opportunity set now emerging for active fixed income investors.

Investors seeking a tax-efficient way to invest may want to take a closer look at municipal bonds, which have become increasingly attractive amid market turbulence, as explained by David Hammer, head of municipal bond portfolio management.