By Daryl Clements
The outlook for the muni market is favorable for 2020, but investors should be prepared for twists and turns. Active and flexible strategies that effectively balance risk and reward as conditions evolve can help keep investors on track.
Last year's municipal returns were the highest in five years, with the Bloomberg Barclays Municipal Bond Index up 7.5%. As yields fell, income-hungry investors helped drive credit spreads lower. As a result, long-maturity and lower-quality bonds performed especially well.
The seemingly insatiable appetite for municipal bonds easily absorbed an uptick in gross new issuance