BGH - Are High-Yield Municipal Bonds 'High Yield' Or 'Junk'?
By Cooper J. Howard
There's an old joke in the bond market: "What's the difference between a high-yield bond and a junk bond?" "It's high yield when you buy it, but junk when you sell it!" Since high-yield munis - those that are rated below Baa3/BBB-, or not rated at all - were one of the best-performing bond sectors in 2018, should investors consider them more "junk" or more "high yield" today?
High-yield munis were among the best-performing fixed income asset classes in 2018
Source: Bloomberg, total returns from 12/29/2017 to 12/31/2018. See disclosures for