The pre-election municipal bond issuance boom
Why we believe this shift in issuance behavior presents a unique opportunity for investors to capitalize on elevated yields before an expected Fed rate cut and election results later this year.
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.
abrdn Ultra Short Municipal Income Fund
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