Municipal bonds have many compelling tailwinds, but the municipal market can be a space with less differentiation and more homogenous product offerings relative to taxable bonds. Taking an active approach to the municipal bond space could help investors pursue higher current income and find relative value compared to more passive approaches.

Even though interest rates have leveled off a bit in recent months, we continue to believe that municipal floating-rate notes are offering relatively attractive yields with some protection against volatile equity and fixed-income markets.

As short-term rates move higher and the Treasury yield curve flattens, many investors are thinking about how to earn income while also protecting themselves against rising rates. In this post, we'll discuss why municipal floating-rate notes -- an often-overlooked part of the market -- may be an attractive option for these investors.