Tag Archives: muni bonds
Seeking Shelter in Short-Term Municipals
As has been the case for most of 2023, markets continue to grapple with the notion of whether the Fed will maintain its plan of “higher for longer.” Last week’s release of strong economic data (improved GDP expectations and strong unemployment) exacerbated selling in longer-dated treasuries, sending yields higher. As a result, U.S. Treasury bonds…
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Why Reach for Yield When You Can Use a Ladder?
The current low interest rate environment is forcing many investors to reassess their risk tolerances. Typically, fixed income investors have three main options when trying to “reach” for yield: 1. Move down in credit quality (i.e., take on more credit risk); 2. Increase duration (i.e., take on more interest rate risk); or 3. Move to…
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