When it comes to building a fixed income portfolio, it’s all about balancing risk and reward. In this case, it’s the amount of yield you’re getting in exchange for the amount of credit and duration risk. Finding the right combination is crucial to minimizing losses, maintaining stability, and achieving a sufficient yield. Sometimes, the market manages to hand investors a gift that allows them to reduce their risk while increasing their returns.
Today, that proposition exists in the world of taxable municipal bonds.
Investors often ignore taxable munis in favor of their tax-free sisters. That’s a real shame, considering today, taxable munis could offer a better return potential than traditional corporate bonds. With them, they can find the holy grail of reducing credit risk while still offering a top yield.
dividend.com
by Aaron Levitt
Oct 01, 2025