March’s bout of geopolitical volatility affected investment approaches of all kinds, and municipal bonds were unfortunately no different. As just one example, the Bloomberg Municipal Bond Index fell more than 2% on the month, as the fixed income asset struggled to retain its safe haven reputation.
Key Takeaways:
- Despite struggling in March, the municipal bond market has far too much going for it for advisors and investors to back out already.
- The overall fundamentals for munis remain relatively sound, especially in terms of credit, technicals, and historical precedence.
- For those choosing to increase municipal bond exposure, Blackrock recommends a barbell yield curve strategy, favoring the transportation, housing, and corporate sectors.
advisorperspectives.com
by Nick Wodeshick of VettaFi | Advisor Perspectives, 5/12/26