Muni bond fundamentals remain strong

In the aftermath of stormy markets that punctuated early-to-mid-April, investors remain uneasy. After steep sell-offs in both equities and then municipal bonds, clients have understandable concerns and critical questions about the future of the market and their investments.

Watch the replay of our recent municipal webinar with Nate Earle, Vanguard senior specialist and fixed income expert,  and Ed Saracino, senior portfolio specialist, as they dive into the latest muni market activity. 

Muni bond yields are at the most attractive level in two decades

Our experts unpack the recent volatility around munis, answer advisors’ most pressing questions, and help alleviate some concerns about this fixed income vehicle and potential impacts on your clients’ portfolios and investment decisions. Find out:

• What really drove the muni bonds' severe sell-off.
• Where muni bonds stand now and what the future may hold.
• Why muni yields have become increasingly attractive.
• The truth about the fundamentals of the muni market today.
• Where to find the most compelling opportunities for your clients now.

Nate Earle explained the underpinning of our view on the municipal bond market: 

“Broadly across the municipal landscape, balance sheets are very strong. This is a market that is in very good shape.”

In this webinar replay, you’ll get eye-opening information about municipal bonds and top-of-mind concerns such as whether Medicaid changes will impact the bond market, if bond tax exemptions are likely to disappear, what funding decreases for private universities mean for fixed income investments, and how the fallout from the California wildfires could impact bonds in that locality. 

Guide clients to find compelling investment opportunities

During times of uncertainty, your clients may be driven to act on their emotions and make impulsive decisions around their investments. This is a valuable opportunity to help guide them on the importance of staying invested and help them explore potential opportunities that arise in times of market stress. Dive into this replay for more expert insights now. 

Notes:

• All investing is subject to risk, including possible loss of principal. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account.

• Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

• Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.