--- title: How to Quantify Muni Risks description: Explore a quantitative, top-down approach to managing municipal bond risk from fixed income portfolio managers and Thornburg vets Sweta Singh and Chris Ryon. image: https://blog.citydifferentinvestments.com/hubfs/2021.12-Quote-risk-linkedin.png --- [![City Different Investments](https://blog.citydifferentinvestments.com/hubfs/raw_assets/public/Custom%20Coded/images/CDI-Logo.svg "City Different Investments")](https://citydifferentinvestments.com/) Menu - [Home](https://citydifferentinvestments.com) - About - [Our Story](https://citydifferentinvestments.com/our-story/) - [People](https://citydifferentinvestments.com/people/) - [Our Commitment](https://citydifferentinvestments.com/community-commitment/) - [Careers](https://citydifferentinvestments.com/community-commitment/) - [Strategies](https://citydifferentinvestments.com/strategies/) - [Fixed Income](https://citydifferentinvestments.com/strategies/fixed-income/) - Municipal Bond - [Short-Term](https://citydifferentinvestments.com/strategies/fixed-income/short-term-municipal-bond/) - 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In our recent call, our fixed income portfolio managers Chris Ryon and Sweta Singh explain their quantitative approach to calculating and managing risk. > **![Sweta Singh](https://blog.citydifferentinvestments.com/hs-fs/hubfs/Sweta%20Singh.png?width=162&name=Sweta%20Singh.png)Sweta Singh**:  *\[If\] you cannot measure risk and opportunities, how do you manage them? …\[W\]e prefer a quantitative approach where we arrive at a top-down picture by building and monitoring a macro-view dashboard. We study various curves, be it Treasuries, agencies, municipals for tax exempt, taxable, corporate. In addition to that, we look at a variety of metrics like roll-down in the curve…core PCE—the Fed's favorite inflation measure—5-year, 5-year break even.* > > *So now, armed with this macro view, we come into the market every day and we look at offerings from our extensive broker dealer network. We also are on a bunch of electronic trading platforms, because frankly, both of us think that they're doing a really good job right now in providing some liquidity in the market. We analyze both opportunities and determine our best ideas by every day being in the market looking at these securities.* > ![Chris Ryon](https://blog.citydifferentinvestments.com/hs-fs/hubfs/Chris%20Ryon.png?width=162&name=Chris%20Ryon.png) > > **Chris Ryon**: *I view risk management as an essential part of being a portfolio manager.  It’s not separate. We have performance attribution tools that identify what the risks are. And that allows us ...to look at the bets we made, how they impacted the portfolio, whether to continue with them, cut them off or add to them, rinse and repeat. That's a continuous cycle.* > >   > >   #### **Listen to the full call to hear our candid takes on risk, valuation, and where to search for opportunities now.** ##### [![New call-to-action](https://no-cache.hubspot.com/cta/default/19807137/b193983a-c4a8-4997-9416-b52c2e92f8f2.png)](https://cta-redirect.hubspot.com/cta/redirect/19807137/b193983a-c4a8-4997-9416-b52c2e92f8f2) --- ###### **IMPORTANT DISCLOSURES** *The information and statistics contained in this communication have been obtained from sources we believe to be reliable but cannot be guaranteed. Any projections, market outlooks or forecasts discussed herein are forward-looking statements and are based upon certain assumptions. Other events that were not taken into account may occur and may significantly affect the returns or performance of these investments. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. 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