Bond investing the municipal bond market’s

The municipal bond market’s reinvestment demand surged post-summer coupon payments. Bond investing in short-dated munis complements equity strategies by locking portfolio yields before possible Fed policy pivots. ACTHX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as "general obligation" and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits. In contrast, active managers can capitalize on potential alpha 6 opportunities in these segments. For example, high yield muni bonds offer the opportunity to generate more income than the index. However, we believe fundamental research is essential to assess whether the additional yield is adequate compensation for the higher risk associated with high yield and less liquid bonds. As earnings season reveals mixed corporate outlooks, traders are adjusting allocations toward high-quality municipal bonds. Bond investing here benefits from tax exemptions and relatively stable credit metrics, shielding returns from equity sector downgrades.