: Interest income is generally exempt from federal income taxes.
: Although rare for high-grade munis, the financial health of the issuer determines the safety of your principal. 5. Recommended Investment Strategies for 2026 why buy municipal bonds
Experts expect the muni market to deliver solid performance throughout 2026, driven by several key factors: : Interest income is generally exempt from federal
While generally considered safe, municipal bonds are not without risks that investors must monitor: 2. Market Outlook for 2026
: Spreading investments across different maturities to mitigate interest rate risk.
: Combining short-term and long-term bonds to capture high immediate income while staying flexible for future rate changes.
As of early 2026, some 20-year AA-rated munis offer TEYs of nearly , outperforming comparable AA corporate bonds by approximately 171 basis points. 2. Market Outlook for 2026