Muni bonds have successfully weathered periods of rising rates—and delivered consistently positive performance—through the years.
· Municipal bonds have a history of consistently positive performance though a variety of interest-rate environments.
· Based on historical and current tax-exempt yields, municipal bonds continue to offer compelling relative value.
· Municipal bonds have featured low correlations with other asset classes and have experienced less frequent and smaller yield moves than taxable bonds.
By Daniel S. Solender, Philip B. Herman, Gregory M. Shuman
March 1, 2022