Municipals: Elevated yields, strong fundamentals and a rally still in early stages

Key themes include:

• Recent market performance – The muni aggregate has returned +1.15% YTD, outpacing U.S. Treasuries, the U.S. Aggregate and investment grade corporates.
• Why the opportunity may not be gone – Historically, when municipals have underperformed the U.S. Aggregate by more than 400 basis points, the market has recovered by 375+ basis points over the following 9 to 20 months.
• Attractive yields – Investment grade municipal yields sit 65 basis points above their five-year average.
• Strong credit fundamentals – State and local reserves are 155% above 2020 levels, and municipal defaults, while continuing to be infrequent and idiosyncratic, are down 70% year-over-year.
• Join Dan Close, Head of Nuveen Municipals, and Margot Kleinman, Director of Research, for a timely discussion on municipal insights and where the market is heading.

Date recorded: 5/20/26
Speakers: Dan Close, Margot Kleinman