Why Municipal Bonds are Outshining Treasuries
Thanks to their par values and steady coupon rates, bonds are often seen as the ‘safe’ asset class, particularly when compared to stocks. But lately, federally-backed bonds aren’t seeming too safe. The recent debt ceiling issues, credit downgrades, and rising deficits have many investors on edge. Treasury bonds might not be as safe as they seem. But municipal bonds? It’s steady as she goes. According to asset manager Northern Trust, munis’ credit quality is better than ever before. And that makes them a great buy, potentially over Treasury bonds. For investors, adding a dose of munis continues to be the right [...]