Municipal Bonds

Rising rates, rising opportunities

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While many asset classes struggle amid high inflation and rising interest rates, we believe that municipal bonds present unique opportunities today.

Quality
Money invested in municipal bonds contributes to state and local projects, such as building roads or funding public schools. They’re often backed by the full faith and credit of the issuing municipality or have revenues pledged from the issuing municipality. Therefore, they’re higher quality and relatively safer than many other equity and fixed-income investments.
Tax efficiency
Because state and local governments issue these bonds to fund public projects, the interest they generate is exempt from federal income tax. In today’s low interest-rate environment, where income can be hard to find, this tax-free interest may help investors increase their income without additional tax burdens.
Inflation resistance
Municipal bonds can help provide a hedge against inflation. Why? Higher prices and incomes create greater revenue from higher property, income and sales taxes, potentially benefiting muni bonds investors.

Funds in focus - Mutual funds

abrdn Intermediate Municipal Income Fund

Class A

abrdn Short Duration High Yield Municipal Fund

Class A

abrdn Ultra Short Municipal Income Fund

Class A

Fund in focus - Closed end funds

abrdn National Municipal Income Fund

Strategy in Focus - Separately Managed Accounts

A bridge to progress.

Why we're optimistic about municipal bonds in 2024

Why a strong rally in Q4, particularly in November, that continued to close out the year has us particularly optimistic about munis this coming year.

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