High-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
For over a decade, fixed-income investors navigated a barren yield environment shaped by an era of relentless monetary intervention.
The Federal Reserve’s prolonged near-zero interest rate policy and aggressive bond-buying programs — designed to resuscitate economic growth — effectively suppressed yields, leaving investors starved for cash flows.
However, the bond market landscape has changed significantly, giving investors new opportunities to generate meaningful income. We see this clearly in the municipal bond market.
kiplinger.com
By Peter Aloisi, CFA® Charterholder