Why - Buy Municipal Bonds

: 2026 is expected to have high issuance. If demand from ETFs and retail buyers does not keep pace, total returns could lag.

: Combining short-term and long-term bonds to capture high immediate income while staying flexible for future rate changes. why buy municipal bonds

: Analysts see specific value in pre-pay energy bonds and Low-Income Housing Tax Credit (LIHTC) bonds , which can offer yields 200–250 basis points higher than generic high-grade munis with similar default risks. 3. Municipal vs. Corporate Bonds Municipal Bonds Corporate Bonds Tax Treatment Generally tax-free (Federal/State) Fully taxable Credit Risk Historically lower default rates Higher risk of default Yield (Absolute) Typically lower Typically higher Yield (After-Tax) Often higher for top tax brackets Often lower for top tax brackets Volatility Lower volatility Higher volatility 4. Risk Considerations : 2026 is expected to have high issuance

: Spreading investments across different maturities to mitigate interest rate risk. : Analysts see specific value in pre-pay energy

: Although rare for high-grade munis, the financial health of the issuer determines the safety of your principal. 5. Recommended Investment Strategies for 2026

: Investors should evaluate munis based on what a taxable bond would need to pay to match their return.