: Combining short-term and long-term bonds to capture high immediate income while staying flexible for future rate changes.
As of early 2026, some 20-year AA-rated munis offer TEYs of nearly , outperforming comparable AA corporate bonds by approximately 171 basis points. 2. Market Outlook for 2026 why buy municipal bonds
: Investors should evaluate munis based on what a taxable bond would need to pay to match their return. : Combining short-term and long-term bonds to capture
The primary reason to buy municipal bonds is their unique tax-exempt status, which significantly enhances their actual take-home return. higher-yielding assets like munis.
: Expected rate cuts by the Federal Reserve are likely to drive cash from money market funds back into longer-term, higher-yielding assets like munis.