Your Cart is Empty
: Investors should evaluate munis based on what a taxable bond would need to pay to match their return.
The primary reason to buy municipal bonds is their unique tax-exempt status, which significantly enhances their actual take-home return. why buy municipal bonds
: Interest income is generally exempt from federal income taxes. : Investors should evaluate munis based on what
While generally considered safe, municipal bonds are not without risks that investors must monitor: While generally considered safe, municipal bonds are not
: High starting yields provide a "buffer" against potential interest rate volatility.
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
: Despite a slower economy, state and local governments maintain strong liquidity positions and healthy "rainy-day" reserves to offset potential slowdowns.