• May 2012


    "A Boutique Has 'a Huge Advantage' in Munis, says DiMella."

    by Brian Chappatta


    "...almost $4 billion of bonds backed by appropriations from the Legislature will have to be restructured."

    - John Loffredo

    "Investors Love Puerto Rico while Pension Bomb Ticks: Muni Credit" by Martin Braun & Michelle Kaske


  • August 2013


    "...an investment in Puerto Rico is not the most prudent thing to do." - John Loffredo

    "Troubling Winds" by Andrew Bary

  • September 2013


    "We sold in 2012 and we've stayed out. We still believe, based upon how the economy is declining in Puerto Rico, that we could see a restructuring happening over the next five years." - John Loffredo

    "Are Muni Bonds a Risky Bet?"


  • March 2014


    "...the good news will be short-lived. ...the debt sale buys Puerto Rico some time, but not much."- Robert DiMella

    "For Puerto Rico Debt, Good News May Be Short-Lived" by Adam Shapiro

  • CNBC

    "They are going to have to roll over debt, most likely again later this year, and this is what we've been telling clients, that this is really a speculative grade credit." - Robert DiMella

    "The Risks of Buying Puerto Rico's Bonds"

  • June 2014


    "[Dimella] questioned the credit ratings of Puerto Rico sales-tax based COFINA bonds, because they are not higher quality than Puerto Rico's general obligation bonds." - Cate Long

    "Talking to Robert DiMella of MacKay Shields" by Cate Long


  • February 2015


    "Puerto Rico has a lot of issues...There's ways of investing in there, but you have to be very active and understand the nuances of the credits." - Robert DiMella

    "Tempted by Puerto Rico Bonds? Be Careful, Expert Warns"
    by Kerima Greene

  • July 2015


    "We've been actively participating in AA rated insured muni bonds that are triple tax-exempt that we believe are mispriced." - John Loffredo

    "Puerto Rico Insured Debt at 76 Cents Lures Muni Buyers to Island" by Brian Chappatta & Michelle Kaske


  • January 2016


    "We had a Q&A with [MacKay Municipal Managers] in the Muni BRIEF in May 2012, and John Loffredo said that they think that the Puerto Rico appropriation bonds will have to be restructured. We know what’s happening there now. Seven cents on the dollar. Do you want to take a guess where the bonds were trading when that Q&A was published? 105 cents on the dollar. So that’s pretty crazy to me. That’s a pretty amazing prediction."
    - Kate Smith & Brian Chappatta

    “Story Behind the Story: 2016 Predictions” by Kate Smith & Brian Chappatta

  • June 2016


    "Investors want to see three things: a debt restructuring, movement toward a balanced budget, and progress on dealing with Puerto Rico’s estimated pension-fund liability of $41 billion." - John Loffredo

    “Best Ways to Bet on Puerto Rico Now” by Andrew Bary


    President Obama signs the Promesa Bill to help Puerto Rico get out of its massive economic crisis.

  • May 2016


    "Most everyone agrees that Congress needs to act to create an oversight board that gives Puerto Rico the regulatory and legal framework to restructure its debts and put the economy on a more sustainable path…Without a powerful board, it will be tough to achieve a comprehensive restructuring." - John Loffredo

    “Puerto Rican Debt Crisis Is Coming to a Head” by Andrew Bary

  • MacKay Municipal Managers’ active management approach has delivered compelling results and highly rated2 municipal bond fund solutions.
  • MacKay Municipal Managers’ active management approach has delivered compelling results and highly rated2 municipal bond fund solutions.

1. MacKay Municipal Managers is the municipal portfolio management team of MacKay Shields LLC.

2. MacKay Municipal Managers was named the 2016 Top Manager in the Municipal Fixed Income Category by Institutional Investor. A list of top-performing managers in 39 asset classes was identified by Institutional Investor Magazine’s editorial and research teams, based on data provided by eVestment. Award based on track record of institutional strategies. For a detailed explanation on award methodology, visit usinvestmentawards.com.

3. Puerto Rico Holdings as of 7/29/16: MainStay Tax Free Bond Fund: 7.1%; MainStay High Yield Municipal Bond Fund: 10.7%; MainStay California Tax Free Opportunities Fund: 3.7%; MainStay New York Tax Free Opportunities Fund: 4.1%; MainStay MacKay Short Term Municipal Fund: 3.3%.

Before you invest

MainStay MacKay Tax Free Bond Fund, MainStay MacKay High Yield Municipal Bond Fund, MainStay MacKay California Tax Free Opportunities Fund, MainStay MacKay New York Tax Free Opportunities Fund, MainStay MacKay Short Term Municipal Fund – A portion of the Funds’ income may be subject to state and local taxes or the alternative minimum tax. The Funds may invest in derivatives, which may increase the volatility of the Funds’ net asset value and may result in a loss to the Funds. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner.

MainStay MacKay High Yield Municipal Bond Fund and MainStay MacKay New York Tax Free Opportunities Fund – Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds.

MainStay MacKay MacKay Short Term Municipal Fund – The Fund is not a money market fund and does not attempt to maintain a stable net asset value. The Fund’s net asset value per share will fluctuate. There can be no guarantee that the Fund will achieve or maintain any particular level of yield. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. These risks may be greater for emerging markets. The principal risk of mortgage dollar rolls is that the security the Fund receives at the end of the transaction may be worth less than the security the Fund sold to the same counterparty at the beginning of the transaction. The principal risk of mortgage-related and asset-backed securities is that the underlying debt may be prepaid ahead of schedule, if interest rates fall, thereby reducing the value of the fund’s investment. If interest rates rise, less of the debt may be prepaid and the fund may lose money.

MainStay MacKay MacKay Short Term Municipal Fund, MainStay MacKay California Tax Free Opportunities Fund and MainStay MacKay New York Tax Free Opportunities Fund – Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities.

MainStay MacKay California Tax Free Opportunities Fund and MainStay MacKay New York Tax Free Opportunities Fund – Because the Funds invests primarily in municipal bonds issued by or on behalf of the State of California or the State of New York, respectively, and its political subdivisions, agencies, and instrumentalities, events in California or New York are likely to affect the Fund’s investments and performance. These events may include fiscal or political policy changes, tax base erosion, and state constitutional limits on tax increases, budget deficits, and other financial difficulties. California or New York may experience financial difficulties due to the economic environment. Any deterioration of California or New York’s fiscal situation and economic situation of its municipalities could cause greater volatility and increase the risk of investing in California or New York.

Past performance is no guarantee of future results, which will vary.

For more information about MainStay Funds®, call 800-624-6782 for a prospectus or summary prospectus. Investors are asked to consider the objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus or summary prospectus contains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing.

MacKay Shields LLC is a federally registered investment advisor and an affiliate of New York Life Investments.

New York Life Investments is a service mark and name under which New York Life Investment Management LLC does business. New York Life Investments, an indirect subsidiary of New York Life Insurance Company, New York, New York 10010, provides investment advisory products and services. The MainStay Funds® are managed by New York Life Investment Management LLC, and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.