Abstract
In the current market, municipal bonds offer attractive after-tax yields combined with high credit quality and low price volatility, but investors' heavy use of munis in short-term tactical allocations (such as crossover trades) has added volatility to the market in recent years. Given the probability of yield-curve flattening and a return to a more normal short-term/long-term yield spread, investors should consider a barbell strategy in which the portfolio is divided approximately equally between long-term and short-term maturities. Investors also should consider the implications of the alternative minimum tax, which will affect an increasing percentage of taxpayers if the tax code is not repealed or modified.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
