However, the space is looking increasingly risky as the spread on low-investment-grade BBB revenue bonds dropped to 0.85 percentage point, compared to 2.9 percentage points at the start of 2013, Bloomberg reports.
“In high yield, it’s likely we’ll see more muted returns than 2014, but still positive,” Peter Hayes, head of munis at BlackRock, the world’s largest money manager, said in the Bloomberg article.
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.