Summary

• The municipal market, as represented by the Bloomberg Municipal Bond Index, returned -0.18% during the first quarter of 2026.
• Municipal bond fund flows started the year strong, reaching the largest first-quarter inflow on record with approximately $25bn.
• The Lord Abbett High Income Municipal Bond Fund returned 0.43% for the quarter ending March 31, 2026, outperforming its secondary benchmark.
• Lord Abbett reduced allocations to shorter maturities while increasing allocations to intermediate and longer maturities to improve curve positioning while maintaining a similar overall duration profile.
• Elevated issuance, combined with recent rate volatility, has pressured valuations, causing municipal-to-treasury ratios to cheapen in select areas of the curve.

Market Review

• The municipal market, as represented by the Bloomberg Municipal Bond Index, returned -0.18% during the first quarter of 2026 ^¹ .

• Overall, municipal yields rose across the curve with the largest increases occurring

28 Followers