MUS - Limited Supply Has Supported Municipal Bonds In 2018
By Stephanie Larosiliere, Senior Client Portfolio Manager on Aug 24, 2018, in Fixed Income
Tax reform created a rush of issuance last year
Recently, municipal bonds have performed well despite increased market volatility and a rising interest rate environment that saw the 10-year US Treasury yield breach 3% a number of times this year.1 The Bloomberg Barclays Investment Grade Municipal Bond Index has returned 0.49% and the corresponding high yield municipal index has returned 1.07% quarter-to-date.2 We believe this strong muni performance was due in part to investor risk aversion that has benefitted