Why Buy Municipal Bonds May 2026

: Although rare for high-grade munis, the financial health of the issuer determines the safety of your principal. 5. Recommended Investment Strategies for 2026

: Despite a slower economy, state and local governments maintain strong liquidity positions and healthy "rainy-day" reserves to offset potential slowdowns.

: Interest income is generally exempt from federal income taxes. why buy municipal bonds

Experts expect the muni market to deliver solid performance throughout 2026, driven by several key factors:

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 : Although rare for high-grade munis, the financial

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: Combining short-term and long-term bonds to capture high immediate income while staying flexible for future rate changes. : Interest income is generally exempt from federal

: If market interest rates rise, the price of existing bonds will fall.