MUS - Why I Still Like Munis But Recently Made Some Portfolio Adjustments

• After growing cautious on municipal bonds at the beginning of the year, there are reasons to be more optimistic going forward.
• The recent stimulus bill limits the credit risk, especially for investment grade munis, with a lot of support going to state and local governments.
• Monthly flows into muni funds remain positive, illustrating this is still a sector that is in favor.
• While credit risk is muted, interest rate risk is a major concern. With many muni funds having high duration levels, I made a swap into the lower duration alternative.

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