Summary
- Municipal bonds have not only recovered, posting positive returns in Q4 of 2020, but they have also continued to generate positive returns through the first four months of this year.
- While we expect discussions to continue around the direction of rates or the magnitude of change, we believe managing exposure within investment grade is clearly in play in 2021.
- In our view, investors can expect a modest performance of 3-5% (described as “earn the coupon”) to be the target for investment grade municipal bonds.
Seeking Alpha
May 11, 2021