Municipal bonds have long been a safe-haven asset class for fixed income investors, but it’s also the most susceptible to the whims of politics.
For instance, the tax-advantaged nature of municipal bonds means that tax rates have a big impact on their valuations. Government spending also plays a key role in the supply of muni bonds over time.
Let’s take a look at how President Biden’s spending and tax plans could impact the municipal bond market over the coming years – and what it means for investors.
municipalbonds.com
by Justin Kuepper
May 20, 2021