Economics and markets
Barron's Live podcast: The road ahead for municipal bonds
February 17, 2023
Bonds are back. With a punishing year for fixed income in the rearview mirror, Vanguard Senior Portfolio Manager Jim D’Arcy, CFA, gives his take on the state of the muni market and where Vanguard sees opportunities in 2023.
Listen to Jim’s wide-ranging conversation with Lauren Foster, senior writer at Barron’s, which covered:
- Muni credit fundamentals and how they might be affected if we see a recession later this year.
- How fortified state and local governments are in the event the economy worsens and we go into a shallow recession.
- The draw of munis rated A and BBB.
- Why he is favoring the 15-year spot on the yield curve in the muni funds he manages.
- Sectors in the muni market that appear attractive now and that stand out as good opportunities.
Related links:
- Municipal bonds through a potential recession—what to expect (article, issued February 2023)
- Munis bounce back with high yields, strong fundamentals (article, issued October 2022)
Notes:
All investing is subject to risk, including possible loss of the money you invest.
Investments in bonds are subject to interest rate, credit, and inflation risk.
Although the income from a municipal bond 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.
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