Manager insight
February 03, 2026
“When markets react to fiscal headlines or economic uncertainty, municipal credit quality doesn't automatically follow. Most muni issuers maintain strong balance sheets and conservative debt practices, making municipal bonds a steadying force,” said Paul Malloy, Vanguard head of municipals, in a recent commentary on the personal finance website Kiplinger.
He also highlights how munis can strengthen portfolio resilience by offering:
Read Malloy’s full commentary at Kiplinger.
Notes:
All investing is subject to risk, including possible loss of principal.
Investments in bonds are subject to interest rate, credit, and inflation risk.
Diversification does not ensure a profit or protect against a loss.
Although the income from municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund’s trading or through your own redemption of shares. For some investors, a portion of the fund’s income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.