“Total returns are great but rates are low,” he said. However, the tax-exempt status of munis makes them attractive relative to other low-yielding areas of the fixed-income market. The yield on the 10-year Treasury note is about 1.6% while money market funds are essentially yielding zero. [Muni Bond ETFs and Taxes]
Tax-exempt muni bonds yielding 2% “make a lot of sense for investors,” Norton said. [Why Muni Bond ETFs are Solid]
He also weighs in on speculation Congress may go after the tax-exempt status of munis, and why the supply of bonds is down. [Will New SEC Chief Derail Muni Bond Rally?]
Watch the video to see the full interview.
