Understanding the Hidden Risks in High-Yield Municipal Bonds

June 26, 2025 — Fixed income investors are often caught in a balancing act: the pursuit of higher yields versus the need to manage risk. In today’s environment, where investment grade municipal bonds offer modest returns, many investors are drawn to high-yield municipal bonds for their significantly higher income potential. Historically, this strategy has paid off — especially when investments are made through diversified, commingled funds that offer liquidity buffers.

  • DATE: June 26, 2025
  • TYPE: PDF
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