Why Buy Municipal | Bonds

: 2026 is expected to have high issuance. If demand from ETFs and retail buyers does not keep pace, total returns could lag.

: Despite a slower economy, state and local governments maintain strong liquidity positions and healthy "rainy-day" reserves to offset potential slowdowns. why buy municipal bonds

: Bonds issued by your home state or municipality may also be exempt from state and local income taxes. : 2026 is expected to have high issuance

: 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 : Bonds issued by your home state or

The primary reason to buy municipal bonds is their unique tax-exempt status, which significantly enhances their actual take-home return.

: Although rare for high-grade munis, the financial health of the issuer determines the safety of your principal. 5. Recommended Investment Strategies for 2026

: Interest income is generally exempt from federal income taxes.