Why Buy Municipal Bonds File

: Spreading investments across different maturities to mitigate interest rate risk.

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

: Bonds bought at a "market discount" may trigger capital gains taxes (de minimis tax), and some bonds may be subject to the Alternative Minimum Tax (AMT). why buy municipal bonds

While generally considered safe, municipal bonds are not without risks that investors must monitor: why buy municipal bonds

: High starting yields provide a "buffer" against potential interest rate volatility.

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