abrdn's Laranjeiro: Tax-exempt yields are an attractive option now
Manage episode 462951362 series 3561101
Miguel Laranjeiro, investment director for municipal debt at Abrdn, says the appetite for muni-bond assets has been growing at a point when "tax-exempt yields look really attractive," with tax-equivalent yields running up to 6 percent for investment-grade bonds, an attractive option compared to corporate and other bond types. Laranjeiro notes that potential policy changes being discussed in Washington are likely to help muni-bond investors and issuers, and that the biggest concern — a repeal of the tax exemption for muni bonds — is unlikely, and would not impact current paper if enacted. Further, Laranjeiro discusses how the wildfires in California — and similar disaster scenarios — are having some unexpected impacts on the muni-bond market.
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