May 11, 2021
The widely followed S&P National AMT-Free Municipal Bond Index, a broad gauge of municipal debt, is modestly higher over the past month.
Generally speaking, municipal bonds don’t deliver big gains in short time frames, but the index’s recent uptick confirms investors are returning to an asset class many retirees lean on for reducing risk and generating income.
“Investors have poured a net $39 billion into municipal-bond mutual funds this year through Thursday, according to data compiled by Municipal Market Analytics, the most over the same period since 2008,” reports Sebastian Pellejero for the Wall Street Journal. “Returns on the debt, which local governments use to fund public works such as sewers or bridges, have beaten those of corporate bonds and Treasurys.”
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