Why Buy Municipal Bonds 100%

: Expected rate cuts by the Federal Reserve are likely to drive cash from money market funds back into longer-term, higher-yielding assets like munis.

AI responses may include mistakes. For financial advice, consult a professional. Learn more Municipal Bond Basics | MSRB why buy municipal bonds

: Analysts see specific value in pre-pay energy bonds and Low-Income Housing Tax Credit (LIHTC) bonds , which can offer yields 200–250 basis points higher than generic high-grade munis with similar default risks. 3. Municipal vs. Corporate Bonds Municipal Bonds Corporate Bonds Tax Treatment Generally tax-free (Federal/State) Fully taxable Credit Risk Historically lower default rates Higher risk of default Yield (Absolute) Typically lower Typically higher Yield (After-Tax) Often higher for top tax brackets Often lower for top tax brackets Volatility Lower volatility Higher volatility 4. Risk Considerations : Expected rate cuts by the Federal Reserve

: If market interest rates rise, the price of existing bonds will fall. Learn more Municipal Bond Basics | MSRB :

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