Eaton Vance — Investor Presentation (August 2026)
39 slides from Eaton Vance's investor presentation, Aug 31, 2026
Slide 1: Municipal Bond Market Monitor
Municipal Bond Market Monitor Municipal Bond Investment Team August 31, 2026
Slide 2: Macro Outlook
Vance }> Parametric Macro Outlook
Slide 3: Yields remain elevated compared to history
Yields remain elevated compared to history Bloomberg 10-Year US Treasury Bond Index Yield-to-Worst 6.00 5.00 4.00 Yield (%) 3.00 2.00 1.00 0.00 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Source: Bloomberg as of 8/31/2026 Data is for informational use only. Past performance is not
Slide 4: Job growth has slowed as unemployment rises
Job growth has slowed as unemployment rises Monthly Payrolls and Unemployment Rate (%) 300 5.00 250 237 228 Monthly Payroll Change (Thousands) 218 214 206 Unemployment Rate (%) 200 4.50 175 160 162 156 159 154 155 148 150 134 127 108 100 87 4.00 64 78 76 67 64 63 53 50 42 41 33 31 21 9 13 0 3.50 -20
Slide 5: Inflation readings have steadied, but still above the Fed's target
Inflation readings have steadied, but still above the Fed’s target Consumer Price Index (CPI) and Core CPI (%) 10.00 9.00 US CPI 8.00 US Core CPI 7.00 Percent (%) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Jul-26 Source: Bloomberg as of 7
Slide 6: US Economic Growth is Sluggish, but Positive
US Economic Growth is Sluggish, but Positive GDP US Chained Dollars (Quarter over Quarter) 10.00 8.00 7.0 6.2 6.00 5.2 4.6 4.6 4.7 4.4 4.2 3.8 4.00 3.3 3.3 3.4 3.3 3.4 3.6 3.3 3.2 2.8 2.9 GDP (%) 2.6 2.7 2.4 2.4 2.5 2.5 2.3 2.2 2.3 2.2 2.0 2.1 2.1 1.8 1.9 2.00 1.3 1.5 1.2 0.8 0.6 0.6 0.5 0.00 -0.6 -
Slide 7: Markets expect slower rate cuts than the Fed is signaling
Markets expect slower rate cuts than the Fed is signaling US Federal Reserve - Central Bank Policy Rate Upper Bound PLUS Futures-implied and FOMC Expectations U.S. Federal Reserve Upper Bound FOMC Dot Plot (Year End) Fed Funds Futures 8% 7% 6% Yield (%) 5% 4.16% by July ‘27 4% 3% Long Run 3.06% 2% 1
Slide 8: As overnight rates decline, money market fund assets may seek a new home
As overnight rates decline, money market fund assets may seek a new home ICI Money Market Funds Total Net Assets 8500 8000 7500 7000 Billions ($) 6500 6000 5500 5000 4500 4000 2021 2022 2023 2024 2025 2026 Source: Bloomberg as of 8/31/2026. Data provided is for informational use only. Past performan
Slide 9: Equity Risk Premium - Bonds look more attractive as stocks appear overvalued
Equity Risk Premium - Bonds look more attractive as stocks appear overvalued Equity Risk Premium 1,000 800 Higher: Stocks undervalued relative to Bonds 600 Average Basis Points 400 200 0 Lower: Stocks overvalued relative to Bonds -200 -400 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Slide 10: Municipal Market Update
= EatonVance >> Parametric Municipal Market Update
Slide 11: August Municipal Market Review
August Municipal Market Review MUNICIPAL INDICES CONTINUED THEIR DOWNTREND IN AUGUST, ALONGSIDE OTHER FIXED INCOME ASSET CLASSES. AUGUST 2026 RETURNS: • Muni Bond Index: -0.23% | HY Muni Index: -0.21% | Taxable Muni Index: -0.13% • US Treasury: -0.06% | Corporate: -0.10% THE MUNICIPAL CURVE STEEPENE
Slide 12: YTD issuance passed the $400bn level in August
YTD issuance passed the $400bn level in August Municipal Bond Issuance 600,000 580,000 514,000 500,000 470,455 463,690 428,005 409,945 411,112 400,000 400,000 360,985 365,210 Millions ($) 318,028 300,000 200,000 100,000 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Source: LSEG Refinitiv
Slide 13: Top State issuance and year over year change (%)
Top 12 State issuance and year over year change (%) Municipal Bond Issuance $10bn -5% $11bn $37bn +34% -17% $14bn +17% $14bn $10bn +8% $11bn -5% +23% $65bn +11% $17bn $9.1bn $54bn +140% +17% 0% $18bn +6% Source: Bloomberg as of 8/31/26 Municipal Bond Market Monitor | August 2026 12
Slide 14: Flows remained strong in August, with Investment Grade and Long Duration leading the way
Flows remained strong in August, with Investment Grade and Long Duration leading the way Muni Fund Flows By Category YTD Municipal Fund Flows ($Bn) 70 67 60 57.4 50 39.4 40 $(bn) 33.5 33.5 30 20 18.6 9.6 10 4.8 4.1 0 All Term Muni Open-End Fund ETF Investment High Long Term Intermediate Short/ Short
Slide 15: The continuation of the summer sell-off leaves only short and long duration segments positive
The continuation of the summer sell-off leaves only short and long duration segments positive for the year Bloomberg Municipal Bond Index Returns YTD and QTD 5.0% 3.0% 1.71% 1.42% 1.0% 0.68% 0.59% 0.67% 0.31% 0.10% -0.05% -0.39% -1.0% -0.64% -0.88% -1.21% -1.71% -3.0% -3.20% -3.45% -3.67% -5.0% 1 yr
Slide 16: High yield municipals have led the way in YTD performance amongst fixed income asset classes
High yield municipals have led the way in YTD performance amongst fixed income asset classes Fixed Income Index Returns YTD and in QTD 3% 2.7% 2.7% 2% 1% 0.7% 0.2% 0.1% 0% -0.1% -0.3% -0.4% -0.5% -1% -0.9% -0.8% -0.9% -1.3% -1.3% -1.3% -2% -2.1% -3% High Yield Municipal High Yield Corporates Municip
Slide 17: Municipal yields remain attractive relative to other fixed income alternatives
Municipal yields remain attractive relative to other fixed income alternatives Yield-to-Worst (%) and Taxable Equivalent Yield for Municipal Indices 9.6% 7.3% 6.7% 5.5% 5.4% 5.3% 5.0% 4.6% High Yield Municipal High Yield Corporates Municipal Corporates Taxable Municipal US MBS US Aggregrate US Treas
Slide 18: Intermediate and long yields rose further in August
Intermediate and long yields rose further in August AAA MMD Municipal Curve 5.00 8/31/2026 12/31/2025 4.50 YTD Yield Maturity Year Change 4.00 Yield (%) 2-Year +0.14 3.50 5-Year +0.43 3.00 10-Year +0.61 15-Year +0.62 2.50 20-Year +0.31 2.00 16YR 18YR 10YR 11YR 12YR 13YR 14YR 15YR 17YR 19YR 20YR 21YR
Slide 19: Taxable Equivalent Yield continues to look compelling in longer segments
Taxable Equivalent Yield continues to look compelling in longer segments, with the 10–20-year part of the curve still exhibiting steepness The Intermediate and Long Curve Segments Remain Attractive Relative to Treasuries 7.77 7.5% AAA Taxable-Equivalent Muni Curve Treasury Curve 7.53 7.16 6.5% 6.64
Slide 20: Investment grade performance ended 2025 in-line with 25-year average
Investment grade performance ended 2025 in-line with 25-year average due to strong second half Bloomberg Municipal Bond Index Calendar Year Returns U.S. Credit Rating Downgrade Enron/WorldCom Scandals 9/11 Fed 4.3% Avg. 12.9% 11.7% Attacks Extended Fed Hiking Cycle COVID-19 Rate Annualized 9.6% 10.7
Slide 21: Current Market Opportunities
Current Market Opportunities
Slide 22: Yields are Elevated: Municipal index yields are basis points above the 10-year average
Yields are Elevated: Municipal index yields are 131 basis points above the 10-year average Municipal Index Yield-to-Worst 5 Index Yield to Worst 10-Year Average 3.98% 4 3 Yield (%) 2 1 0 8/31/2016 8/31/2017 8/31/2018 8/31/2019 8/31/2020 8/31/2021 8/31/2022 8/31/2023 8/31/2024 8/31/2025 8/31/2026 Sou
Slide 23: Yields are Elevated: Muni Yields remain elevated at over 4% at the end of August
Yields are Elevated: 20 Year Muni Yields remain elevated at over 4% at the end of August Bloomberg Municipal Benchmark 20-Year Index Yield-to-Worst (%) 6.00 5.00 4.65% 4.00 Yield (%) 3.00 2.00 1.00 0.00 Source: Bloomberg as of 8/31/2026. Index data based on Bloomberg BVAL Benchmark 20-Year Municipal
Slide 24: Yields are Elevated: Current yield levels in municipals are elevated vs. historical averages
Yields are Elevated: Current yield levels in municipals are elevated vs. historical averages Bloomberg Municipal Indices Yield-to-Worst vs 5-, 10- and 20-Year Averages Investment grade municipals Taxable Equivalent Yield High yield municipals Taxable Equivalent Yield (YTW) (YTW) 7% 11% 10.02% 10% 6.
Slide 25: Starting Yields Matter: Locking in current interest rates can provide an income cushion
Starting Yields Matter: Locking in current interest rates can provide an income “cushion” and potentially higher returns HISTORICAL FORWARD RETURNS DEPENDING ON STARTING INDEX YIELDS Lock in today’s interest rate environment for income “cushion” and potentially higher returns Average 12-Month forwar
Slide 26: High yield municipal yields remain compelling at 5.67%
High yield municipal yields remain compelling at 5.67%, 35 basis points above the 5-year average Bloomberg High Yield Municipal Index YTW 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 BBG HY Muni Index Yield to Worst Avg Yield +1 Std Dev -1 Std Dev Source: Barclays and Bloomberg, as of 8/31/2026. The inde
Slide 27: In the past, steep yield curves have been accurate predictors of strong 12-month forward returns
In the past, steep yield curves have been accurate predictors of strong 12-month forward returns. The yield curve remains below its February high despite steepening in August. MMD AAA Municipal 5s/30s Yield Curve 350 GFC Meredith Whitney +10.52% +10.64% Taper Tantrum +9.58% 300 OBBA Passage 250 +4.8
Slide 28: Ratios on the long end of the yield curve continue to present opportunities
Ratios on the long end of the yield curve continue to present opportunities for investors Muni/Treasury Ratios Muni/Treasury Ratios 12/31/25 and 8/31/26 95% 88% 87% 85% 82% 80% 75% 71% 66% 65% 65% 63% 55% 5-Year 10-Year 20-Year 30-Year 8/31/2026 12/31/2025 Source: Bloomberg as of 8/31/26. Past perfo
Slide 29: Municipal Credit Overview
= EatonVance >> Parametric Municipal Credit Overview
Slide 30: Credit Fundamentals: Most sectors will likely experience stable credit quality in 2026
Credit Fundamentals: Most sectors will likely experience stable credit quality in 2026 However, we believe credit pressure could arrive amid new administration federal policy decisions • State and Local Governments outlook remains stable. States & Water & Higher Charter The median rainy day fund bal
Slide 31: State Credit Fundamentals: upgrade/downgrade ratio has weakened
State Credit Fundamentals: Municipal credit quality remains positive, but the upgrade/downgrade ratio has weakened. Q1 2026’s Upgrades/Downgrades ratio of 1.2 to 1 remains far from Q4 2020’s weakness of 0.3 to 1 Source: BofA Global Research, Moody’s Ratings, S&P Ratings, Bloomberg, J.P. Morgan as of
Slide 32: State Credit Fundamentals: Elevated rainy day fund balances
State Credit Fundamentals: Elevated rainy day fund balances and conservative spending growth give states the financial means to navigate federal funding uncertainties. State Rainy Day Fund Balances & Median Balance as % of Expenditures $250 16.0% 14.0% $200 12.0% 10.0% $150 8.0% $100 6.0% 4.0% $50 2
Slide 33: The number of municipal defaults has consistently declined since 2020
The number of municipal defaults has consistently declined since 2020 Number of Unique Annual Defaults Q2 2026 Number of Unique Defaults Decreased YoY Number of Unique Defaults 160 20 120 80 10 17 40 8 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD Q2 2025 Q2
Slide 34: Disclosures
Disclosures
Slide 35: Risk Considerations
RISK CONSIDERATIONS An imbalance in supply and demand in the municipal market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about municipal issuers. I
Slide 36: Additional Information
ADDITIONAL INFORMATION Credit ratings that may be referenced are based on Moody's, S&P or Fitch, as applicable. Credit ratings This material has been prepared on the basis of publicly available information, internally developed data are based largely on the rating agency's investment analysis at the
Slide 37: Important Information and Disclosure
ADDITIONAL INFORMATION Important Information and Disclosure TERMS INDEX DEFINITIONS Municipal-to-Treasury Yield Ratios are relative value indicators that measure the richness or Bloomberg Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. cheapness of Municipal bond yie
Slide 38: Additional Information
ADDITIONAL INFORMATION The Firm has not authorised financial intermediaries to use and to distribute this material, unless such use EMEA and distribution is made in accordance with applicable law and regulation. Additionally, financial This material is for Professional Clients/Accredited Investors o
Slide 39: Additional Information
ADDITIONAL INFORMATION U.S. NOT FDIC INSURED | OFFER NO BANK GUARANTEE | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | NOT A DEPOSIT Latin America (Brazil, Chile Colombia, Mexico, Peru, and Uruguay) This material is for use with an institutional investor or a qualified investor onl