Why Buy Municipal Bonds Official

: Using muni ETFs or separately managed accounts (SMAs) to navigate sector-specific opportunities and risks.

: Combining short-term and long-term bonds to capture high immediate income while staying flexible for future rate changes. why buy municipal bonds

: Interest income is generally exempt from federal income taxes. : Using muni ETFs or separately managed accounts

For an investor in the top tax bracket (37% + 3.8% NIIT = 40.8% total federal rate), a is equivalent to a 6.1% taxable yield . why buy municipal bonds

While generally considered safe, municipal bonds are not without risks that investors must monitor:

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