Morningstar's Christine Benz demonstrates how our Tax-Equivalent Yield Calculator can help you determine whether you're better off investing in taxable or municipal bonds after adjusting for munis' tax-exempt status.
Improving local-government finances and lower default rates than corporates have made high-yield municipal bonds an attractive option for investors eyeing tax-free income, says Nuveen's John Miller.
Municipal coffers are recovering, but many bond investors still favor revenue bonds, particularly the essential purpose variety, over their general obligation brethren.
Inflows to municipal bond mutual funds, while still robust, have fallen for a second straight week, to $871 million from funds that report their flows weekly.
Municipal bond mutual funds recorded a second consecutive week of strong flows, as funds that report their flows weekly saw $1.44 billion in inflows for the week of Jan. 16.