Municipal Bonds — Why Buy

Experts expect the muni market to deliver solid performance throughout 2026, driven by several key factors:

The primary reason to buy municipal bonds is their unique tax-exempt status, which significantly enhances their actual take-home return. why buy municipal bonds

: If market interest rates rise, the price of existing bonds will fall. Experts expect the muni market to deliver solid

: Using muni ETFs or separately managed accounts (SMAs) to navigate sector-specific opportunities and risks. total returns could lag.

: Investors should evaluate munis based on what a taxable bond would need to pay to match their return.

: 2026 is expected to have high issuance. If demand from ETFs and retail buyers does not keep pace, total returns could lag.