Taxable municipal bonds

26 May 2017

Gregory Gizzi, Senior Portfolio Manager, Municipal Bonds Philadelphia

Non-US investors have been flooding the market for US taxable municipal bonds in recent years, with non-US holdings doubling since 2009, according to Federal Reserve data. US municipal debt has indeed become global.

This analysis explains how taxable municipal bonds differ from traditional credit instruments, by examining traits that include a tendency toward high creditworthiness, an abundance of relatively long duration, and the potential to generate competitive yield. The discussion concludes by highlighting several catalysts that set the stage for the US municipal debt market to continue growing during the next decade.

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