While municipal bonds are well-recognized for their tax-exempt income generation, the potential magnitude of after-tax benefit can still go underappreciated by investors. In this commentary, we explore how municipal bond tax-equivalent yields expand in high rate environments, compare favorably against taxable fixed income alternatives, and can be further maximized through active management.


  • Tax-equivalent yield calculations are amplified by higher rates
  • Tax-equivalent muni yields are attractive versus taxable alternatives
  • Sourcing attractive municipal yields beyond the index

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