2024-06-07 09:40:00 ET
Summary
- Higher coupons and interest payments can make premium municipal bonds worth the extra upfront cost.
- Contrary to some common myths and misperceptions, premium bonds have several advantages that may make them attractive candidates in a municipal bond portfolio.
- In our view, by sidestepping premium bonds, investors may be taking on three unintended but avoidable risks that primarily affect discount and par bonds.
By Matthew Norton & Daryl Clements
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For further details see:
Premium Municipal Bonds: Myth Vs. Fact