Summary
- As tax season is upon us, we wanted to again highlight why many investors find municipal bonds a valuable addition to their portfolios.
- As individuals work through their 2018 tax return filing process, many may be shocked to find they have a tax bill to pay for 2018 when they may not have in the past.
- In addition to the expected pick-up in demand for munis, we also continue to see a decrease in supply in the market.
Many investors flock to municipal bonds because of potential tax advantages. While this year’s taxes are probably already done and dusted, Franklin Templeton’s municipal bond team felt it was an appropriate time to revisit the opportunities and risks that recent US tax reform poses for the space. Sheila Amoroso and Christopher Sperry discuss how constrained supply is impacting the market.
By Sheila Amoroso, Senior Vice President, Director, Municipal Bond Department, Franklin Templeton Fixed Income Group®; Christopher Sperry, CFA, Vice President, Portfolio Manager, Franklin Templeton Fixed Income Group®
Apr. 12, 2019