The case for municipal bonds
Municipal bonds outperformed many other fixed income categories in 2018, and the positive momentum is expected to continue in 2019 as well. In a report, Charles Schwab Corporation concluded that the outlook for municipal bonds remains positive for 2019 as well, but the asset manager suggests a cautious approach considering the interest rate environment and geopolitical risks.
(Source - Charles Schwab)
Higher-rated bond issues are preferred by Charles Schwab, not only considering the lower credit risk, but also the lower yield spread between high rated issues and low rated