Even after notable market drawdowns of the past two decades, municipal bond investors have historically recovered their losses in less than one year. Examining drawdowns greater than 4% in the past 20 years, the Bloomberg Barclays Municipal Bond Total Return Index has recovered in eight months, on average.
Municipal Fixed Income
And the bar is raised, again?
Standard & Poor’s recently released a report on the risks to local issuers of deferring maintenance on critical infrastructure assets.
Liquidity tiering for potentially higher yields in the tax-free market
While the Federal Reserve (Fed) has raised short-term rates gradually from the historically low levels reached during the global financial crisis, investors are still challenged to balance their income and liquidity goals.
The Bloomberg Barclays Municipal Bond Index is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity of at least one year.