NMCO - Mid-Grade Munis Have Room To Rebound
By Daryl Clements
Caught in the COVID-19 economic downdraft, the municipal market suffered unprecedented volatility in March. Since then, however, demand for higher-grade municipal bonds has soared, driving the Bloomberg Barclays AAA Municipal Index up 11% between its March 23 low and May 31.
But many mid-grade municipal issues - such as BBB-rated bonds - have lagged this rally, even as other higher-risk assets, such as corporate debt and equities, have enjoyed strong comebacks. Tax-aware investors should sit up and take notice.
For Mid-Grade Credits, Reality Is Better than Perception
To our minds, one ingredient