Summary

• Investor demand for munis is stronger than expected, even as new bond supply continues at record levels, which could help support muni bond prices.
• Pre-paid gas munis tend to offer better yields than traditional munis and can potentially deliver strong after-tax returns, especially for those in higher tax brackets.
• Muni credit quality remains healthy overall, with more bonds upgraded than downgraded year to date.

By Mark Paris & Tim Spitz

Tim: Let's talk about supply and demand in the muni market. Has anything changed from what you were expecting earlier this year?

Mark: Great question, Tim. Supply is