Summary
- Municipal bonds continue to attract investor interest, even in hard-hit areas like New York, which was the center of the pandemic in March.
- The market appears to be pricing in robust federal support for the muni sector, but President Trump and the Republican-led Senate seem resistant to this idea.
- As yields decline, so has MUB’s income stream. While the tax benefits of munis remain relevant, I see a limited total return in the months ahead.
Seeking Alpha
Aug. 29, 2020