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.
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.
Flows to municipal bond mutual funds remained positive for a seventh straight week, but only modestly so, recording $292 million in inflows for the week of Feb. 20.
Municipal coffers are recovering, but many bond investors still favor revenue bonds, particularly the essential purpose variety, over their general obligation brethren.