Municipal Bonds

In fixed income investing, trade execution plays an important role in overall portfolio performance. The ability to source bonds efficiently, invest capital thoughtfully and execute trades at competitive prices can directly affect investor returns.

On Friday, May 15, the 10-year Treasury yield closed at 4.59%, its highest level since February 2025. The 30-year Treasury yield closed near 5.12%, a level last seen in 2007. Those are significant moves because they reflect a repricing of the market’s inflation, growth, and Federal Reserve expectations.

Chris Galipeau discusses high-conviction insights that go beyond media headlines.

One thing most people don’t know is that prior to the invention of the Fed, other than during wars, there was almost no inflation. Various sources including the Federal Reserve regional banks show the purchasing power of $1 in 1900 was the same as or higher than it was in 1800.

Tax-equivalent yields on high-quality munis are hitting 7% to 9%. Discover how WisdomTree ETFs, WTMU and WTMY, exploit the steep yield curve.

Many have drawn the comparison between the current AI buildout with the dotcom period in the late 1990s, when the infrastructure for the internet was built. It’s a sensible comparison to make because of the massive amount of capital deployed to commercialize the buildout of revolutionary and life-changing technology.

Psychology plays a larger role in our investing lives than many of us care to admit. Often, when investing, we would be better off being a bit more robotic and a bit less human. The reason behind this is often our feelings influence our decisions in ways that are not always to our advantage.

Get ready each week with high-conviction insights that go beyond media headlines.

Munis may have struggled a bit in March, but the long-term environment for these bonds remains full of potential.

As equity markets transition into 2026, large cap equity portfolio managers share a surprisingly consistent framework — paired with sharp disagreements on where risk and opportunity sit. A survey of large growth, value, and blend managers reveals a market shifting away from simple narratives toward selectivity, fundamentals, and manager skill.

S&P 500 first quarter 2026 earnings are tracking at nearly 28% year-over-year, with rising profit margins suggesting the strong run could persist.

The generational divide is a part of the human condition – and the investor condition. It’s not just that one group has more experience than the other, or that one is more eager to make its own way, but that both groups can learn totally different lessons from the same event.

Utilizing a portfolio of individual bonds can provide benefits that are difficult to reproduce via other fixed income investment vehicles. The portfolio can be completely customized to the specifications of an investor, providing a solution that aligns long-term financial goals with personal preferences. Product choice, issuer selection, cash flow, maturity, tax considerations, and credit quality, can all be customized.

Despite lingering geopolitical tensions, higher oil prices, and renewed inflation concerns, equities moved higher in April, supported by a strong start to the Q1 earnings season and resilient economic growth.

Get ready each week with high-conviction insights that go beyond media headlines.

Like Treasuries and Treasury Inflation-Protection Securities (TIPS), municipal bonds betrayed their normally docile reputations in March as the conflict in Iran stirred increased volatility for normally subdued corners of the bond market.

April showed us just how sensitive markets can be to a small number of powerful forces: energy prices, inflation and geopolitical risk. The conflict in the Middle East dominated headlines, with a ceasefire helping to steady markets even as energy prices remained elevated.

Core aggregate benchmarks remain the bedrock of many fixed income portfolios but advisors are increasingly looking to income alternatives.

The sharp rebound from the March lows has pushed most major equity indexes back to record highs. This upside momentum has been fueled in part by signs of de-escalation with Iran and growing expectations that the Strait of Hormuz could reopen soon.

Where should advisors and investors be looking to find the best opportunities in fixed income? Given the current macroeconomic picture, now is certainly a good time to consider shifting one’s fixed-income portfolio.

In a recent (unscientific) Franklin Templeton social media poll, we asked investors what they felt was the biggest risk to the global economy over the next 12 months. Nearly half (45%) of respondents highlighted high oil prices as their greatest fear factor.

A quarterly report providing an in-depth analysis of the global economic landscape, key drivers and insights into fixed-income markets for investors.

On Friday, the Department of Justice announced it was dropping its investigation of the current Federal Reserve Chair Jerome Powell. Senator Thom Tillis was effectively blocking the nomination process from moving forward while the Department of Justice investigation of Powell was ongoing.

With the proverbial ceasefire negotiation can kicked down the road for the second time in a week, the U.S. and Iran remain in a stalemate over the Strait of Hormuz.

Kevin Warsh's bid to become the next chair of the Federal Open Market Committee (FOMC) unfolded amid sharp political tension, legal uncertainty, and pointed questions about his independence from President Trunp. During a combative Senate confirmation hearing, Warsh sought to reassure lawmakers that he would not allow political pressure to dictate monetary policy, even as unresolved Justice Department investigation into current Chair Jerome Powell threatens to delay his confirmation and underscores broader concerns about the politicization of the central bank.

Higher oil prices have both positive and negative effects on the municipal bond market. Investors may want to evaluate their concentration risk.

Concerns about the sustainability of U.S. fiscal policy have moved back into the investment spotlight. Over the past week, both multilateral institutions and prominent policymakers have raised warnings about the potential implications of America’s expanding debt burden for Treasury markets.

When advisors and investors hear the terms “high yield” or “junk” as it relates to bonds, they understandably have some apprehension. After all, junk bonds carry elevated credit risk relative to their investment-grade peers. Hence the higher yields, which act as added compensation for the extra risk.

Fixed-income market sentiment was dominated by geopolitical headlines, particularly the conflict in the Middle East following disruptions to the Strait of Hormuz and rising oil prices, which contributed to renewed inflation concerns.

The U.S. market story this year has been a tug-of-war between sticky inflation, slower growth, and resilient risk appetite. For fixed-income investors, that mix has produced more narrative movement than the 10-year Treasury itself.

While Russ acknowledges that the ongoing conflict in the Middle East has contributed near-term volatility, he also notes that these rising tensions are occurring against the backdrop of a solid U.S. economy.

Get ready each week with high-conviction insights that go beyond media headlines.

Over the past year, LPL Research’s Strategic and Tactical Asset Allocation Committee (STAAC) has emphasized that tactical investing does not require constant activity. Instead, it requires preparation, patience, and the discipline to act only when the expected benefit of a change clearly outweighs the risks.

Focusing on tax planning year-round can significantly improve your financial situation. By reviewing your recently filed 1040 form, you can uncover valuable opportunities to optimize investments, maximize deductions and strategically plan for retirement, ensuring long-term financial health and tax efficiency.

Rising oil prices and the historically inflationary aspects of war have changed expectations for Federal Reserve interest rate policy and have pulled Treasury yields higher.

In what should be a surprise to no one, energy has been one of the better performing sectors since the joint U.S.-Israel airstrikes on military targets in Iran on February 27, although it has given up some ground since a two-week cease fire was announced last week.

Despite a confluence of economic shocks in the first quarter, markets have held up remarkably well, but cracks appear to be forming beneath the surface.

Yield curves exist for many products and can be interrelated, yet they also carry distinctive characteristics. Normally, long-term rates are higher than short-term rates because investors demand a higher return for lending money over longer periods. This arrangement would create an upward-sloping curve much like the Treasury curves displayed to the right.

For financial advisors, tax season should not be the only time to talk to clients about municipal bonds. However, with April 15 arriving this week, the timing is ideal to examine how muni bond ETFs are rapidly becoming a cornerstone of fixed-income allocations in 2026.

Private markets benefited enormously from the post-Great Financial Crisis era of ultralow interest rates that stretched through much of the 2010s and into the early 2020s. Amid regulatory change and muted returns in traditional fixed income during this time, investors were increasingly pushed into alternative areas of capital markets in search of yield.

AI’s rapid growth is driving demand not only for electricity but also for the clean water needed to run its physical infrastructure. As data centers expand, rising water intensity is straining supplies and testing long-term sustainability. In our analysis, these pressures create both risks and opportunities for active investors.

At Exchange 2026, key thought leaders from firms across the country gathered in Las Vegas to share their ideas for navigating today’s macroeconomic uncertainty and the future of ETFs.

Fixed income markets have faced a challenging stretch following the escalation of conflict in the Middle East. Sharply rising oil prices and renewed inflation concerns have pushed US Treasury yields higher, and municipal bonds have moved in tandem.

The US-Iran conflict has altered Iran’s regional influence and, more broadly, has many other consequences. It pressures government relations as well as global and financial market trading.

Total return is the entire amount of income passed to an investor holding a particular security. It annualizes any price change plus any dividends or interest earned over time.

All eyes were turned toward the Middle East throughout the month of March, with the US and Israel’s ongoing conflict with Iran causing energy prices to surge. The closure of the Strait of Hormuz, alongside damage to energy infrastructure across the gulf region, caused crude to rise above $100 a barrel for the first time since 2022.

Get ready each week with high-conviction insights that go beyond media headlines.

Energy cycles have a way of rewarding investors who show up early, while punishing those who assume the next upturn will look exactly like the last one. Supply disruptions caused by the war in Iran that began just under a month ago have upended markets globally, with oil markets taking center stage.

In today’s era of automation, some situations demand a more active approach. Municipal bond investing is one.

In February, market sentiment was shaped by escalating US-Iran geopolitical tensions and sector-specific selloffs driven by concerns about AI’s potential disruption to existing business models.

Muni bonds have been a strong performer so far in 2026, benefitting from an important transition to the ETF wrapper from mutual funds.

In this commentary, I’m not going to try to predict any outcomes or long-term effects but rather want to cover how markets have reacted so far and highlight some opportunities that have been created.

As has been the case from day one when the first airstrikes began, the key factor in assessing economic and market impact is the duration of the effective Strait of Hormuz closure and resulting effects on prices of energy and other commodities. Prediction markets are split on whether the conflict ends by the end of May.

The market has shifted quickly from concerns about artificial intelligence (AI) disruption to rising geopolitical risks tied to the conflict in Iran. Headlines continue to drive market movements as investors wait for greater clarity on the timing of a U.S. exit strategy.

In this article, Russ Koesterich notes the year-to-date strength of both cyclical and defensive stocks, a pairing that seems too strange to last.

As the capital expenditure (capex) race for compute continues, we thought that it would be worthwhile to briefly outline the current state of play facing the well-publicized data center buildout. To understand why so much capex is needed to support artificial intelligence (AI), we must first understand how data centers are built and operated.

Volatility spiked as investors questioned the Federal Reserve's next move, adding to existing concerns about private credit markets. Here's why investors shouldn't overreact.

The Treasury market is stuck between artificial intelligence (AI)-driven job displacement and the ongoing conflict in Iran. Earlier in the year, Treasury yields fell sharply as investors weighed the possibility that accelerated AI adoption could slow economic growth by displacing labor.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

Improving after tax returns is rarely as simple as boosting pretax returns or reducing tax expenses. It’s actually quite a bit more involved than that. As we see it, maximizing after-tax performance requires an “all of the above” approach, applying a range of techniques in a holistic way.

Managed futures strategies, also known as Commodity Trading Advisors (CTAs) or trend-followers, are designed for environments where macro shifts drive persistent price trends across equity, bond, commodity, and currency markets. As geopolitical risk has spiked due to the conflict with Iran, the current backdrop will present a unique test for investment strategies.

Notwithstanding developments in the Iran conflict, there are important leadership shifts still at play within the equity market, which emphasize the importance of diversification.

January is a time to revisit financial plans, make changes, and ensure objectives are being met. This review isn’t about exposing bad financial plans, but instead finding what is outdated and revising.

Investing in financial markets is not for the timid. In a very recent Bond Market Commentary, the Head of Fixed Income Solutions, Nick Goetze, discussed “Preparing for the Storm.”

Stocks were choppier in January, but most areas of the market showed gains. The one laggard was large-cap growth, which was strong in recent years and for most of 2025, but trailed other stock indices.