Municipal high yields bonds tracked in the S&P Municipal Bond High Yield Index have risen over 2.1 % year - to - date, the same index excluding Puerto Rico bonds is up over 3 % year - to - date.
The index has seen a year to date return of negative 7.66 % helping to hold back the returns of
the municipal high yield bond market.
One bright light is
the municipal high yield bond market as the S&P Municipal Bond High Yield Index is up 0.82 % year - to - date helped by positive performance in May by Puerto Rico bonds and a recovery over 3.2 % of the Tobacco Settlement bond sector.
Not exact matches
Also, they usually offer
higher yields than
municipal bonds.
RB: The extreme undervaluation of
high yield municipal bonds.
Like most sectors of the fixed - income market,
municipal bonds struggled in the first quarter as
yields climbed
higher.
Tax reform could impact the
high yield market and lead to a buying opportunity for
municipal bonds.
Similarly, you should have a variety of
bonds in your portfolio, including Treasury
bonds,
municipal bonds, corporate
bonds,
bonds with different maturities, foreign
bonds and
high -
yield bonds.
Collins has adopted a more defensive position in the last 18 months, reducing duration and credit risk by scaling back overweight positions in
high -
yield and
municipal bonds, but he's sticking with allocations to intermediate term funds.
Although
municipal bond yields are generally lower than taxable
bond fund
yields, some investors in
higher tax brackets may find they have a
higher after - tax
yield from a tax - free
municipal bond fund investment instead of a taxable
bond fund investment.
The
yields and risks are generally
higher than those offered by government and most
municipal bonds, and the income is subject to state and federal taxes.
There is the Treasury or Government
bond, the Zero - coupon
bonds, the Fixed rate
bonds, the Floating rates notes, the
High -
yield bond, the Exchangeable
bonds, the Convertible
bonds, the Inflation - indexed
bonds, the Subordinated
bonds, the Covered
bonds, the Perpetual
bonds, the Bearer
bonds, the
Municipal bonds, the Revenue
bonds, and the Social impact
bonds amongst others.
The minimal dividends from traditional CDs and
high - quality Treasury
bonds leaves little to be desired when compared to corporate or
municipal debt
yielding magnitudes of greater income.
They should go
higher as interest rates rise, but they aren't as tax efficient as
municipal bonds, which are already
yielding higher rates.
Instead, we would continue to emphasize U.S.
high yield bonds and longer - dated
municipals, as we believe both still offer some relative value within fixed income.
Although default risk is typically low, there are
high -
yield municipal bond funds that increase credit risk.
We prefer tax - exempt
municipal bonds, as well as U.S.
high yield debt.
The Bloomberg Barclay's
High Yield Municipal Bond Index tracks consists of below - investment grade municip
Municipal Bond Index tracks consists of below - investment grade
municipalmunicipal bonds.
Over time, MFS has been a leading innovator in the asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first
high -
yield municipal bond fund and the first global balanced fund, and more recently creating «outcome - oriented» products, such as its line of target - risk, target - date, and other asset allocation strategies.
Municipal Bonds provide investors with a great combination of
high yields and tax - free income.
NEW YORK (AP)--
Yields for
municipal bonds climbed this week, and the 10 - year yield on the AP Municipal Bond index hit its highest level in
municipal bonds climbed this week, and the 10 - year
yield on the AP
Municipal Bond index hit its highest level in
Municipal Bond index hit its
highest level in a month.
The duration of the S&P
Municipal Bond High Yield Index is 7.58 vs a 4.98 duration of the S&P U.S. Issued
High Yield Corporate
Bond Index.
High yield municipal bond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76 % so far in
yield municipal bond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76 % so far
municipal bond yields have risen by 30bps in the same time period as the S&P Municipal Bond High Yield Index is down 1.76 % so far in J
bond yields have risen by 30bps in the same time period as the S&P
Municipal Bond High Yield Index is down 1.76 % so far
Municipal Bond High Yield Index is down 1.76 % so far in J
Bond High Yield Index is down 1.76 % so far in
Yield Index is down 1.76 % so far in June.
MFS ®
Municipal Income Trust is the first closed - end, high - yield municipal bond fund traded on the New York Stock
Municipal Income Trust is the first closed - end,
high -
yield municipal bond fund traded on the New York Stock
municipal bond fund traded on the New York Stock Exchange.
But after considering the impact of taxes, the taxable - equivalent
yield (the return required on a taxable
bond to make it equal to the return of a tax - exempt
bond) of
municipal bonds was a full percentage point
higher, at 3.75 %, for investors in the
highest (37 %) tax bracket.
While the majority of
municipal bonds are investment grade, there are
high yield municipal bonds and
bond funds that invest in them as well.
This means that investors in
high yield municipal bond funds should be willing to accept much
higher volatility in both the share price of the fund and the income stream that it provides.
Examples are Bank Loan Funds,
High Yield Corporate
Bond Funds, and
High Yield Municipal Bond Funds.
I'm looking at VWAHX
High Yield Tax Exempt
municipal bond fund and am wondering if this is a good option as well.
You'll also have to find a
high - grade
municipal bond that fits your time horizon with a
yield high enough to beat the other short - term investment options.
The graph below charts
yield to worst of bonds in the S&P Municipal Bond Puerto Rico General Obligation Index vs. the yield to worst of bonds in the S&P U.S. Issued CCC & Lower High Yield Corporate Bond I
yield to worst of
bonds in the S&P
Municipal Bond Puerto Rico General Obligation Index vs. the
yield to worst of bonds in the S&P U.S. Issued CCC & Lower High Yield Corporate Bond I
yield to worst of
bonds in the S&P U.S. Issued CCC & Lower
High Yield Corporate Bond I
Yield Corporate
Bond Index.
We prefer tax - exempt
municipal bonds, as well as U.S.
high yield debt.
Fixed income sectors shown to the right are provided by Barclays and are represented by the following Bloomberg Barclays Indices — Treasury Inflation Protected Securities: U.S. Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index;
High Yield: US Corporate
High -
Yield Bond Index; Convertibles: US Convertible
Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate
Bond Index;
Municipals:
Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates Index
Related investing themes:
Bond Funds,
Municipal Bond Funds,
High Yield Bond Funds, Corporate
Bond Funds, Goverment
Bond Funds.
For more information about
bonds, see our Investor Bulletins on
municipal bonds, corporate
bonds,
high -
yield corporate
bonds and interest rate risk.
Because
municipal bonds seek to provide tax - free income, they have generally offered
higher yields than their taxable counterparts.
Meanwhile, taxable equivalent
yields of the non-callable
municipal bonds in that maturity range remain significantly
higher and more in line with U.S. corporate
bonds.
At that point the 3 %
municipal bond has a taxable equivalent
yield of 4.62 %, slightly
higher than the corporate
bond.
But after considering the impact of taxes, the taxable - equivalent
yield (the return required on a taxable
bond to make it equal to the return of a tax - exempt
bond) of
municipal bonds was a full percentage point
higher, at 3.75 %, for investors in the
highest (37 %) tax bracket.
They can also select
high -
yield or
municipal bonds.
Municipal bonds can play an important role in an investor's portfolio, offering a
higher tax - equivalent
yield than many taxable fixed income alternatives, and the potential for portfolio diversification to stocks and other types of
bonds.
This meant that
municipal bonds, which typically
yield less than Treasuries before tax, began to offer
yields higher or comparable to federal government debt on a pre-tax basis.
For example, the annual return on long - term US Treasury
bonds is likely to be very different from the return reported for
high -
yield corporate
bonds or general obligation (GO)
municipal bonds.
Franklin Liberty Intermediate
Municipal Opportunities ETF (FLMI) will have a bent toward intermediate - and
higher -
yielding opportunities versus the Franklin Liberty
Municipal Bond ETF (FMLB), which will be investing more in
high - grade
bonds with slightly longer maturities.
Yield: Investment grade tax - exempt
municipal bonds on average are
yielding 2.03 % vs.
higher yielding taxable investment grade corporate
bonds.
However, looking at it from the perspective of Taxable Equivalent
Yield (TEY)
municipal bonds are currently at
higher yields than their corporate
bond equivalents.
Municipal bond buyers typically demand a
higher yield for this illiquidity — «Liquidity Premium».
The S&P
Municipal Bond High Yield ex-Puerto Rico Index down nearly 4.5 % in the last three months of 2016 has rallied back with a total return of 8.34 % in 2017.
Under J.R.'s management, S&P Dow Jones Indices has launched a global suite of fixed income indices, which includes a focus on transparency for
municipal, corporate, and
high -
yield bonds, senior loans, and sovereign debt.
The S&P
Municipal Bond New Jersey General Obligation Index has seen its weighted average
yield rise by 21bps in 2015 eerily similar to the rise of
yields in the S&P
Municipal Bond Puerto Rico General Obligation Index which have moved 22bps
higher.