Municipal bonds, along with the entire fixed-income world, faltered last year as the Federal Reserve raised interest rates aggressively to fight inflation. But munis, up around 2% on average this year, are recovering. Some analysts think there’s still value in the space, especially in longer-dated bonds.
“The real opportunity is beyond 10 years,” says Duane McAllister, co-head of the muni team at Baird Advisors, referring to bonds maturing in 10 to 30 years.