Franklin New York Intermediate-Term Tax-Free Income Fund Q1 2026 Commentary
Franklin Templeton·2026-06-15·via All Articles on Seeking Alpha
Summary
Over the quarter, Franklin New York Intermediate-Term Tax-Free Income Fund outperformed its benchmark, the Linked Bloomberg New York Muni Bond/10-Year Muni Bond Index.
The fund's yield curve positioning detracted from relative performance during the quarter, primarily driven by an overweight to muni bonds with 10 or more years to maturity.
Rating allocations benefited relative returns for the period, led by our overweight to bonds with no external credit rating, as well as an overweight to BBB rated bonds.
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Takeaways
Markets: In the first quarter of 2026, new issuance of municipal (muni) bonds exceeded the average seen in the past few years (Source: Barclays). The war in the Middle East which began at the end of February continued throughout
