Municipal bonds continue to offer compelling opportunities for tax-efficient income in 2025, supported by strong fundamentals and robust credit conditions. With the U.S. economy on a steady growth path, inflation aligning with the Fed’s targets, and interest rates expected to remain range-bound, Jason Appleson, Head of Municipal Bonds at PGIM Fixed Income, explains why the municipal bond market presents numerous advantages.
Investing involves risks. Some investments are riskier than others. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. Investors cannot invest directly into an index. Fixed income investments are subject to credit, market, and interest rate risks, and their value will decline as interest rates rise. Investing in municipal bonds involves credit and market risks.
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