“There’s no question about how the imbalance between the supply of new issues and demand has created a very favorable landscape for positive returns,” Jim Colby, chief municipal strategist at Van Eck Global, said in the Financial Times article. “It’s a compelling backdrop for many investors, specially when you also factor in some of the tax incentives attached to the securities.” [MuniNation: Crosscurrents May Benefit Municipals]
For example, MUB has a 1.68% 30-day SEC yield and a 2.96% taxable equivalent 30-day SEC yield for those in the highest tax bracket. Interest income from munis is exempt from federal taxes.
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.