Municipal bonds have long been a favorite spot for investors looking to score tax-free income. Issued by states and local governments to fund their daily activities or special projects, munis are generally free from federal taxes and sometimes state/local taxes as well. This makes them a prime stopping ground for taxable accounts and high income individuals.
But not all muni bonds are tax-free. In fact, there’s a whole sector of taxable municipal bonds out there.
And right now, trends are pointing toward the taxable muni market’s sector. For investors looking for income and potential appreciation, these trends make the taxable muni sector an interesting bet going forward.
dividend.com
by Aaron Levitt
Jul 19, 2023