While generally considered safe, municipal bonds are not without risks that investors must monitor:
As of early 2026, some 20-year AA-rated munis offer TEYs of nearly , outperforming comparable AA corporate bonds by approximately 171 basis points. 2. Market Outlook for 2026
: High starting yields provide a "buffer" against potential interest rate volatility.
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Experts expect the muni market to deliver solid performance throughout 2026, driven by several key factors:
: Although rare for high-grade munis, the financial health of the issuer determines the safety of your principal. 5. Recommended Investment Strategies for 2026