Why Munis Still Make Sense: Compelling Yields In A Changing Landscape
Source: SeekingAlpha
2025-05-15 08:59:00 ET
Summary
- Despite policy uncertainty, municipal bonds continue to offer compelling yields and experience strong investor demand, making them an attractive tax-advantaged income option in today’s market.
- Net flows remain solid: municipal bond ETFs saw $2.7 billion in inflows in April alone. The market may not be flashing bargain-bin yields like a month ago, but relative value persists - particularly for those seeking income without overcommitting to duration or credit risk.
- A 10-year AAA muni yielding 3.25% offers a taxable-equivalent yield of 5% for those in the top tax bracket. A 30-year AAA at 4.37% equates to 7.38% TEY.
Despite policy uncertainty, municipal bonds continue to offer compelling yields and experience strong investor demand, making them an attractive tax-advantaged income option in today’s market. ...
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Why Munis Still Make Sense: Compelling Yields In A Changing Landscape
First Trust New York Municipal High Income ETF
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