“Although munis are getting interesting, there might be a better entry point down the road when there’s more clarity in the rate cycle,” said Matthew Tucker, head of iShares fixed-income strategy, in the report.
Some bond ETFs have traded at discounts to underlying value this year as interest rates rise. In particular, funds tracking the more illiquid sectors of the bond market can see premiums and discounts. These can be due to price discovery as the ETFs trade in real time while the underlying holdings may not have transacted in days, or sometimes weeks. [Digging Deeper Into Bond ETF Pricing, Liquidity]
iShares National AMT-Free Muni Bond ETF
