Municipal Bond Market Insight - Taking Stock of Your Bonds

What were the key takeaways from last month’s numbers? Our muni specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for muni investors.

Key takeaways from the latest edition:

 Municipal bonds completed August in positive total return territory year-to-date (YTD), unlike Treasurys and corporates and despite muni underperformance during the month compared with taxables.

 Record supply continued unabated, as did robust muni mutual fund inflows, but a seasonal shift in September may lighten additional inflows.

 Intermediate and long muni yields have again reached YTD highs and signal an attractive entry point.

In a tale of two markets, equity risk premium is among its lowest in 20 years, while muni yields are the highest they’ve been in 20 years.