The municipal bond market is vast at approximately $3.7 trillion in size and it is heterogeneous in scope with a wide variety of sectors. Municipal bonds are issued at the state and local level as general, tax-supported obligations or for specific purposes such as water and sewer systems, health care, electric utilities, housing, higher education, etc. Broad geographic variation also contributes to the diversity of municipal market options.
Municipal bonds can provide several benefits to an investor portfolio:
- Predictable tax-free stream of income
- Wealth preservation and reduced capital risk
- History of positive returns (28 of last 33yrs*)
- Portfolio diversification
- Secondary market liquidity
We believe that a well-managed municipal bond portfolio can play a vital role in an investor’s overall asset allocation.
*Barclays Capital Municipal Bond Index. Past performance is no guarantee of future results.