Municipal Bonds

One of the advantages of individual bonds is the ability to custom-select bonds that fit individual needs and/or goals

US markets struggled in the first half of April due to tariff-related worries. The second half saw rallies amid policy reversal.

Uncertainty reigned through April and likely will continue to do so, at least in the near term. Markets have reacted, both negatively and positively, to every headline coming out of Washington.

Recession risk remains elevated, likely only receding with a fuller "pivot" in tariff-related uncertainty. While every recession is unique, history can provide a guide.

Tax planning for high-income earners isn’t about loopholes; it’s about leveraging the strategies available to you.

A historic sell-off enhances value, with high yields, strong fundamentals, and ample reserves mitigating policy risks.

Recent volatility has pushed yields to historically high levels, potentially creating opportunities in municipal bonds, especially for higher-net-worth investors.

Coming off a wild ending to a disappointing first quarter, investors must navigate unsettled capital markets and decipher a wave of incoming policy news.

Theoretical forecasts and earnings announcements may provide initial insights as to the impact of current tariff proposals, although estimates may be imprecise.

Many investors are wondering what to think of the volatility and uncertainty that has been pulsing through financial markets over the past few weeks.

Compare corporate and municipal bonds, including risks, returns, and tax benefits. Learn which bond type fits your investment goals.

U.S. defensives and international lead.a

The first quarter of 2025 marked a significant departure from the preceding two years, which had been characterized by an improving global economy and correspondingly positive market returns. Market performance in Q1 was dominated by abrupt, short-term policy shifts rather than longer-term economic trends, and tariffs became the foremost concern for market participants.

Less favorable seasonal technicals, increased focus on municipal-specific policy risks, and severe volatility spurred by higher-than-anticipated tariff increases weighed heavily
on sentiment and resulted in deeply negative total returns and significant underperformance versus Treasuries in March and early April.

Nick Goetze discusses fixed income market conditions and offers insight for bond investors.

Markets have had a wild ride these past couple of weeks, alongside chaotic tariff-related news, with volatility (and its policy triggers) most elevated in the bond market.

Another period of heightened volatility in the markets reminds us why tax management can be such an essential part of fixed income investing.

Bonds have gained as investors sought shelter amid growing fears around a tariff-driven global economic slowdown.

Concerns about a trade war have rattled markets so far in 2025, but we believe fixed income investors need to be patient, stay defensive, and see how things evolve before making any big decisions.

Given the abundance of market uncertainty, it may be best to adhere to Treasuries, or for additional yield, to municipal bonds.

Callable bonds make up a large share of the bond market—and introduce one more variable into the bond-investing process.

While there are no absolute winners in a trade war, there may be relative winners in the global stock market for investors to consider.

Turbulence is expected to continue until markets gain more clarity.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

Amid a market correction and heightened policy, inflation and growth concerns, valuations are back in the spotlight.

Dr. David Kelly, chief global market strategist, J.P. Morgan Asset Management, provided insight on current opportunities at Exchange.

On April 2, the U.S. is preparing to announce additional tariffs on a wide range of imports and countries. Here's the assessment of those policies, and their possible impacts.

Muni issuers are generally sound, so cuts in aid would be felt but dealt with.

Recession fears have risen sharply of late as economic soft data have rolled over, upping the risk that hard data start to catch down.

Several indicators used by fixed income investors to measure value have recently taken a positive turn, potentially flashing an entry-point opportunity for investors with money to put to work.

Economic growth, earnings performance, and rising fiscal spending coupled with "America First" policies are driving international stock markets.

Parametric’s tax optimized ladders (TOL) solution may help to enhance after-tax yield by seeking to optimize the allocation between tax-exempt and taxable bonds, based on an investor’s own tax rate and the relative value between sectors.

The municipal bond tax exemption is back in focus. We believe the threat to infrastructure investment outweighs the modest revenue benefits, which could keep the risk of elimination or significant curtailment low.

As daily headlines drive volatility, the market has avoided overreacting thus far.

Heightened economic uncertainty—propelled mainly by trade policy—has unearthed weakness in the equity market, with most pain felt under the market's surface.

Should you avoid lower-rated, riskier investments like high-yield corporate bonds or bank loans? Not necessarily, but you should understand the risks.

The overall size of the municipal bond market is over $4 trillion. While this a very large market, an investor’s personal situation combined with the nuances of the municipal bond market can sometimes make it feel much smaller.

On this week’s episode of ETF Prime, VettaFi’s Todd Rosenbluth shares advisor polling data on fixed income.

We explore drivers that may contribute to continued outperformance of European stocks since the bull market began in October 2022.

Tax season can be stressful, but with the right approach, advisors can turn it into an opportunity.

The managed account industry has seen tremendous growth and client adoption, with assets increasing by 28% over the last year and 50% over the past two years.

None of us outside Trump’s inner circle know what the real goals are. What looks like needless chaos might lead to benefits that outweigh the costs. One potential benefit is revenue. Could the tariffs produce significant tax revenue that would help reduce the federal debt? The president seems to think so.

Taxable municipal bonds may be an attractive option for investors in lower tax brackets, but there are things investors should know before making a decision.

“Know what you own” is one of the many phrases we use to help describe and define fixed income, the components of bonds, and the characteristics that affect an investor.

Growth and value are often thought of simplistically, but subsurface details in growth- and value-labeled indexes challenge pre-conceived notions of the factors.

At the same time, the Fed has mostly ignored the impact of easy financial conditions—the combination of stock, bond, and credit conditions—offsetting increases in interest rates by bolstering wealth and confidence.

Cash flow and income sometimes get commingled, potentially creating confusion. Cash flow and yield typically represent two different components that can be used to accomplish different objectives.

Tariff policies have been announced and then subsequently rescinded or delayed–but not yet resolved. They may still hold the potential for market volatility.

Municipal bonds were a hot topic at last week’s VettaFi Fixed Income Symposium — more than I expected them to be.

Alex Mackey of MFS delved into the active bond strategies underpinning MFSB and MFSM in the recent Q1 2025 Fixed Income Symposium.

In today’s era of automation, some situations demand a more active approach. Municipal bond investing is one.

Impact investors can help devastated communities recover and build resilience.

The equity market appears to be showing signs of broadening beyond technology.

Many market observers are forecasting leadership from active fixed income exchange traded funds this year.

Stocks rallied in early 2025 as market leadership shifted, with Large Cap Value outperforming growth stocks, while a major AI development from China triggered a sell-off in U.S. technology stocks, raising concerns about the future of AI leadership and high-end chip demand. For investors the implications are more significant for fixed income portfolios, while equities should continue to do well as long as the labor market holds up.

When constructing a portfolio, investors who are seeking income have a range of options to choose from.

Markets responded positively during Trump's first week in office, despite threats of tariffs on the three largest trading partners of the U.S. Are trade risks being dismissed?

Fixed income comes into 2025 on the heels of an explosive 2024. But with 2025’s landscape shifting, investors need guidance.

In our view, active investors face opportunities to outperform created by looming policy changes and the macro landscape.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

Four strategies for navigating crosswinds in the municipal bond market.

Bonds look attractive again after the most recent rise in interest rates. Markets are likely to continue to overreact to every new employment report and inflation reading, keeping interest rate volatility elevated as yields dance up and down with each data point.

Some soft data metrics have started to rebound sharply and catch back up to relatively resilient hard data, but it's too soon to say whether the gap is definitively closing.

The pairing of active management and fixed income could be as important as any time in recent memory.

Outlooks for higher education and healthcare are the weakest while transportation and essential utilities are the strongest. Resiliency to withstand an economic downturn is strong for all sectors.

The wildfires may affect some municipal bond issuers in the devastated areas, but the impact to other California bonds or to the broader muni market is likely limited.

Reflecting ongoing uncertainty around inflation and the trajectory of monetary policy, yield volatility posed challenges in 2024. Yet it also highlighted the importance of tax-efficient strategies like loss harvesting in fixed income portfolios.

Natural disasters test—but don’t break—municipalities’ resilience.