Investors who are still sitting on a mountain of cash can find some of the best yield opportunities in years in municipal-bond funds.
The muni market has a lot going for it right now, with yields solid even on high-credit-quality issues. Municipalities are generally in good fiscal shape, and the economy looks to remain solid going into 2025, says Paul Malloy, head of U.S. municipals at Vanguard Group.
“All of those things make for a trifecta for the muni market,” he says.
Current pretax yields on muni bond funds in the intermediate part of the curve for AA credit quality are hovering anywhere from 3% to 3.5%, which is shy of the current 4.25% and 4.3% offered by U.S. Treasury five- and 10-year notes, respectively.
barrons.com
By Debbie Carlson
Dec 18, 2024, 2:00 am EST