The yield on the 30-year hit a multi-decade high this week, spiking amid continued fiscal and monetary concerns. The 30-year hitting 5.45%, its highest mark since 2004, comes amid an already busy year for bonds.
In more sanguine times, advisors and investors turn to bonds for portfolio diversification, income — and hopefully — some volatility reduction. However, things aren't always easy in the fixed income market, and the current environment proves as much.
The municipal bond landscape continues to receive significant interest in both flows and supply. That, and investors looking to get muni bonds exposure for tax purposes in portfolios, positions them for serious ETF interest.
In broad terms, there appears to be little headline risk facing advisors and income investors mulling municipal bonds. All 50 states carry investment-grade credit ratings, confirming that their credit quality remains solid.
California isn't just the largest state by population. It's the largest issuer of municipal bonds, presenting its residents and fixed income investors all over the country with an array of opportunities.
With advisor enthusiasm mounting towards fixed income strategies, many portfolios are looking to build municipal bond exposure. Joe Gotelli, vice president and senior portfolio manager for American Century Investments®, recently sat down with VettaFi to break down the advantages of municipal bonds, American Century's fund library, and more.