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?

March 13, 2023 — Despite sticky inflation and rapidly rising interest rates, municipalities continue to exhibit strong credit quality. Record tax collections, billions of dollars of government stimulus, and strong budget oversight have helped to bolster state reserve funds to their highest levels ever.

February 28, 2023 — Last Thursday, the State of Illinois achieved another milestone with its third one-notch rating upgrade from S&P over the last 19 months, bringing the state’s bond rating into the single-A category for the first time since 2016.

January 31, 2023 — The transportation sector makes up about 16% of the municipal bond index, and it was the hardest hit by Covid-19 in terms of operating revenue declines. In our latest Muni Minute, Sage looks at New York City’s Metropolitan Transportation Authority (MTA), the largest mass transit provider in the country, and Dallas Area Rapid Transit (DART), and explains how revenue composition is the primary factor that distinguishes weak and strong muni credits.

January 31, 2023 — For most investors, taking advantage of the tax code is a prudent investment strategy that may enhance realized after-tax returns. Sage allows clients to take advantage of tax-loss selling as each client owns their securities in a separately managed account. While this can be an added benefit, clients and advisors should be aware of several important factors.

January 3, 2023 — The “January Effect” will provide a supportive technical backdrop as investors look to rebalance asset allocations, including their municipal holdings.

November 15, 2022 — Despite a difficult return environment for fixed income this year, municipal bonds can provide investors with attractive relative performance, tax-free income, and a defensive credit profile.