economy
March 6, 2026
Find safety and income in these tax-exempt bonds as the Iran war stirs up the market
Rates on municipal bonds moved higher this week, which many see as an opportunity to lock in yields and stabilize portfolios.
TL;DR
- Municipal bonds offer stability and income, with income free from federal and state taxes.
- Recent market volatility has led to increased municipal bond yields, creating an opportunity for investors.
- Geopolitical risks are not seen as negatively impacting the credit quality of municipal bonds.
- The municipal bond market has outperformed other fixed-income investments year to date.
- Experts suggest potential for further recovery and outperformance in municipal bonds based on historical trends.
- Investors can gain exposure through individual bonds, ETFs, or mutual funds, with ETFs/mutual funds being suitable for smaller investments.
- A barbell strategy combining short and long-duration bonds is recommended for a balanced approach.
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