Podcast: ‘Boring’ municipal bonds may be anything but in today’s market

Municipal bonds are drawing renewed attention as higher interest rates have lifted income potential and made tax-exempt yields more attractive for many investors. After several years of unusual volatility, the muni market appears to be settling into a more constructive backdrop, with a positive outlook for yields into 2026.

For advisors, the appeal lies not only in steady income but also in the local nature of the asset class. Munis offer exposure to US states and communities, while avoiding much of the geopolitical risk that can affect more global investments.

That said, credit quality still matters, especially as fiscal conditions vary across issuers and regions. In today’s market, munis may be less “boring” than they seem, offering both resilience and selective opportunity for income-focused portfolios.