Key Themes

  • The Municipal Index returned 7.18% in the fourth quarter, resulting in a 6.03% total return for 2023.
  • Yields fell across the municipal curve, with short and intermediate-term yields falling more than long-term yields, resulting in a steeper yield curve. 
  • Municipal valuations richened versus UST with similar maturities, reflected in broadly lower Municipal-to-Treasury (MT) ratios. 
  • We believe current credit pricing properly reflects solid fundamental conditions, while absolute yield levels still offer a compelling option for tax sensitive investors.

 

For an in-depth look
Municipal Market Quarterly Review