Summary
- High-yield municipal bonds typically offer higher yields than investment-grade munis, but carry additional risk.
- A small allocation to high-yield munis can make sense for more aggressive muni investors – but today’s yields are low relative to alternatives.
- If you choose to venture into this part of the market, we suggest you do so via an exchange-traded fund (ETF), mutual fund, or separately managed account, to help with diversification and ongoing credit monitoring.
Seeking Alpha
By Cooper J. Howard
Jan. 16, 2019