National v. State-Specific Strategies: An Alternative Path to Maximum After-Tax Income
March 22, 2023 — When it comes to owning tax-exempt municipal bonds, the most significant benefit is the avoidance of federal income taxes on the income component. For some investors, it also makes sense to avoid state income taxes, especially for those states with the highest tax brackets, such as California and New York. For investors in these states, it can be advantageous to invest in a state-specific municipal strategy to garner the maximum tax efficiency. Unfortunately, the municipal market is quite efficient when it comes to valuations for securities issued by states with high income taxes. If anything, the securities issued by these states tend to trade at richer valuations over time due to their perceived constant demand. So, what is a comparable alternative?
Municipal Fixed Income
Strong Fundamentals Prevail for Munis
March 13, 2023 -- Despite sticky inflation and rapidly rising interest rates, municipalities continue to exhibit strong credit quality. Record tax collections, billions . . .
Fool’s Gold? Chasing Higher Yields in Short-Dated Bonds May Be Shortsighted
March 13, 2023 -- During periods of inverted yield curves, investors may ask “why should I take on additional price/interest rate risk if I can get a higher yield in . . .
Financial Stability Concerns Come to the Forefront — Fixed Income Outlook in 5 Charts
March 16, 2023 -- Stresses from the US regional banking system as well as Credit Suisse have made the outlook for economic growth and Fed policy more complex. The Fed . . .