Navigating Municipal Bonds Amid Economic Uncertainty

This chapter explores the current investment environment for municipal bonds, particularly in the context of rising interest rates and inflation. It delves into the advantages of municipal closed-end funds, highlighting their potential for greater upside amidst attractive discount levels and comparing their dynamics to other investment vehicles. Additionally, the discussion touches on risks related to tax policy changes and the concept of contrarian investing in this asset class, emphasizing the importance of market sentiment on fund discounts.