Navigating the municipal bond market

James Dearborn, Head of Municipal Bonds | February 5, 2014

  • In recent months there has been a lot of concern and anxiety in the municipal bond market, and investors remain skittish.
  • Although the general trend in municipal credit is positive, investors should be mindful of the risks associated with Puerto Rico municipal bonds.
  • We believe the combination of high tax equivalent yields, increasing tax rates, a steep yield curve and improving fundamentals result in higher tax revenues and restrained spending could make muni bonds an appealing option for tax sensitive investors.