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☆ Cut your tax bill and revamp income-generating investments with this move
▼ + stars: | 2023-11-15 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Tax loss harvesting is a staple of year-end planning. Bonds are ripe for tax loss harvesting in the wake of the Federal Reserve's rate-hiking cycle. Consider that the longer-dated iShares 20+ Year Treasury Bond ETF (TLT) has a year-to-date total return of about -7.3%, while the shorter-term iShares Core US Aggregate Bond ETF (AGG) has a total return of roughly 0.7% in 2023, according to Morningstar. "Tax loss harvesting is a silver lining for some of the pain they've been feeling the last couple of years." Bonds and the wash sale rule To benefit from tax loss harvesting, investors must avoid violating the wash sale rule .

Persons: Bonds, Morningstar, Kristy Akullian, Jeffrey Levine, St . Louis, Levine, Jordan Naffa, Naffa, VGSH, Lisa, Kirchenbauer Organizations: Treasury Bond ETF, Bond, BlackRock, Internal, Strategic Wealth, Arista Wealth Management, Treasury, SEC, VGIT, Omega Wealth Management Locations: St ., Las Vegas, Arlington , Va

☆ Protect your portfolio income from hefty state taxes with these funds
▼ + stars: | 2023-10-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors in high-tax locales can protect some of their portfolio income from steep levies by adding state-specific municipal bond funds to their fixed-income roster. "In the muni bond fund market, we're seeing yields higher than they have been in more than a decade," said Amy Arnott, portfolio strategist for Morningstar Research Services. That's because while muni bond income is generally free of federal taxes, it can also avoid state levies if the investor resides in the state where the bond was issued. That's where state-specific muni bond funds come into the picture. See below for a chart of 10 large state-focused muni bond funds.

Persons: Bonds, haven't, Amy Arnott, Dan Herron, Herron, Arnott, CNBC's Gabriel Cortes Organizations: Federal Reserve, Muni Bond ETF, Morningstar Research Services, Vanguard, SEC, Vanguard New, CPA, Wealth Advisors, muni Locations: California, New York, Massachusetts, Ohio, Jersey

☆ Get tax-exempt income on the cheap as bond shake-up hits munis
▼ + stars: | 2023-10-12 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Tax-exempt income and relative safety are on sale for investors who are sniffing around municipal bonds. Tax-exempt income Interest income from municipal bonds is exempt from federal income tax — and can avoid state and local levies, too, if an investor and the bond issuer are in the same jurisdiction. This feature makes munis especially attractive to high-income investors in the 32% marginal federal income tax bracket and higher. Investors weighing a tax-exempt municipal bond against a corporate bond would do well to check out the tax equivalent yield. Schwab's Howard noted that the 5- to 7-year part of the municipal bond curve is favorable.

Persons: MUB, Nathan Will, Will, it's, Cooper Howard, Schwab's Howard, Shannon Saccocia Organizations: Federal Reserve, Muni Bond ETF, Vanguard, AAA, Bond, ., New York Life Investments, Schwab Center, Financial Research Locations: munis, muni

☆ Capitalize on once-in-a-generation opportunities in the bond market by making these 5 moves now, according to 6 leading fixed income strategists
▼ + stars: | 2023-10-10 | by ( James Faris | ) www.businessinsider.com time to read: +11 min

Yahoo FinanceHowever, six leading fixed income investors are confident that the pain won't last much longer. Michele continued: "I've been doing this since 1981, so I've seen a decade of double-digit bond yields with disinflation. Alex Petrone, the director of fixed income at Rockefeller Asset Management, agreed that it's too soon to write off a recession. Nailing timing helps maximize returns, though fixed income experts said that's difficult because the Fed's policy decisions are unpredictable. Buying Treasuries and municipal coupons on both the long and short ends of the curve are how she recommends playing fixed income.

Persons: Jonathan Mondillo, you've, Bob Michele, Michele, I've, we'll, Federal Reserve —, Robert Robis, Robis, Alex Petrone, it's, Petrone, Mary Daly, David Schiffman, Roger Aliaga, Diaz, Aliaga, Mondillo, Schiffman Organizations: Yahoo Finance, JPMorgan Asset Management, isn't, Federal Reserve, BCA Research, Rockefeller Asset Management, Fed, San Francisco Fed, Aquila Investment Management, Vanguard's Investment, Investment Locations: Scotland, bottoming, Abrdn, Aquila, Treasuries, CCC

☆ Travel and service strength is a tailwind for airport MUNIs, says Neuberger Berman's Jamie Iselin
▼ + stars: | 2023-09-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTravel and service strength is a tailwind for airport MUNIs, says Neuberger Berman's Jamie IselinJamie Iselin, head of municipal fixed income at Neuberger Berman, joins 'The Exchange' to discuss tax-free MUNI bonds moving higher in response to interest rates, the changing landscape of the MUNI market returns, and momentum growing in the airport bond market.

Persons: Neuberger Berman's Jamie Iselin Jamie Iselin, Neuberger Berman Organizations: MUNIs

☆ Franklin Templeton's Jennifer Johnston on muni bonds: Buy bonds with robust security provisions
▼ + stars: | 2023-09-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFranklin Templeton's Jennifer Johnston on muni bonds: Buy bonds with robust security provisionsJennifer Johnston, SVP and director of municipal bond research Franklin Templeton, joins 'The Exchange' to discuss the tax advantage nature of MUNI investments, shifting investments from treasuries to MUNIs, and the credit fundamentals of the MUNI market.

Persons: Franklin, Jennifer Johnston, Franklin Templeton Locations: treasuries

☆ Don't let the tax break drive your search for munis. How to find the right fit for your portfolio
▼ + stars: | 2023-09-14 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Income investors love municipal bonds for their tax advantages, but they may not necessarily be making the best choice for their portfolio. The interest earned on munis is generally exempt from federal income tax and, in some cases, state tax. That means a muni bond yielding 3.7% can reach over 6% on a tax-adjusted basis for those in the highest tax bracket. For instance, if muni bonds are yielding 3% and Treasurys are at 4%, the answer is 0.75. "If your tax rate is above that number, you should buy munis," Pate said.

Persons: Richard Carter, Brian Barney, Fidelity's Carter, Wesly Pate, muni, " Pate, Carter, Paul Malloy, Pate, Barney, Research's Pate Organizations: Fidelity, Management, Vanguard Locations: munis, muni, Boston

☆ Income investors go back to school. These munis offer an opportunity as property values rise
▼ + stars: | 2023-09-07 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Local municipal general obligation bonds help fund operations or specific projects. Right now, yields for local general obligation munis are historically attractive at about 3.7%, said Cooper Howard, fixed income strategist for the Schwab Center for Financial Research. In general, the credit quality of local general obligation munis are pretty solid, said Richard Schwam, a municipal credit research analyst at AllianceBernstein. "There are so many general obligation bonds in the country that you can stay away from anything too tiny. Weinberg also recommended diversifying with multiple states, but cautioned that buying a bond outside of your state means you'll likely be subject to state income tax.

Persons: It's, Cooper Howard, Howard, Richard Schwam, Schwam, Schwab's Howard, bode, Ian Weinberg, Weinberg Organizations: Schwab Center, Financial Research, AAA, San, Family Wealth, Pension Management, Schwab's Municipal, Bond Locations: California, New York, San Francisco

☆ Muni bonds are cheap, but they may hide a tax surprise. How to prepare
▼ + stars: | 2023-08-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High-income investors, especially those in the 32% marginal federal income tax bracket, appreciate that munis offer income that's exempt from federal levies. Paying for a discount Bond yields and prices move opposite to each other. That means municipal bonds are trading at discounts, which can come with tax ramifications if they're too cheap versus the bond's par value, or the amount the issuer will repay the investor at maturity. Consider an investor who is purchasing a 10-year municipal bond with a par value of $10,000, trading at $9,750. Investors also shouldn't overlook the fact that the muni bond is still providing them with tax-free income in their portfolios.

Persons: Bond, Cooper Howard, Charles Schwab, Tim Steffen, Baird, Steffen Organizations: Federal Reserve, Bond, SEC, Investors

☆ This tax-exempt fund with a yield surpassing 4% is 'one of the best,' Morningstar says
▼ + stars: | 2023-06-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

The fund invests at least 80% of its assets in investment-grade municipal bonds, and only up to 20% in those below investment grade. Municipal bonds are issued by government entities, such as a city or state, and raise money for public projects, such as building roads or schools. VWAHX 1Y mountain Vanguard High-Yield Tax-Exempt fund The fund, which trades under the ticker VWAHX, currently has a 30-day SEC yield exceeding 4%. "We are not risk averse, but we are very opportunistic about how we apply our risk," Kiselak explained. Opportunity in health care Health-care muni bonds make up about 15% of the fund, Kiselak said.

Persons: Morningstar, Mat Kiselak, —, Bond, Elizabeth Templeton, VWAHX, Kiselak, Jeff DeMaso, DeMaso, He's Organizations: SEC, Morningstar ., Vanguard, Independent Vanguard, Puerto Locations: Puerto Rico

☆ Municipal bonds can offer your portfolio tax-free income and stability as recession fears loom
▼ + stars: | 2023-06-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

"People see [municipal bonds] as a defensive position for two reasons," said Shannon Saccocia, chief investment officer at NB Private Wealth. "Historically, municipal bonds have had low default rates," wrote Jared Woodard, investment and exchange-traded fund strategist at Bank of America, in a June 12 report. For instance, there's the Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) and the Nuveen New York Quality Municipal Income Fund (NAN) . In select situations, some advisors are recommending closed-end municipal bond funds. Closed-end muni bond funds trading at a deep discount include the BNY Mellon Municipal Income (DMF) and the MFS High Income Municipal (CXE) .

Persons: Shannon Saccocia, Jerome Powell, Jared Woodard, Nisha Patel, Patel, Paul Winter Organizations: Bank of America, Bond, Muni Bond ETF, Vanguard, Income Fund, Five, BNY, Income Locations: York, BNY Mellon

☆ The year is half over. Here are three considerations to make sure your portfolio is on track
▼ + stars: | 2023-06-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Rebalance your portfolio Tech's remarkable bounce in 2023 could result in a significant portfolio tilt toward that sector — and an overconcentration that could hurt in the event there's a downturn. That means it's time to trim down a few of those oversized positions and make sure your asset allocation is properly reflecting your goals. Check in with cash Cash is another asset that requires your attention, especially in an era when investors have a host of options of where keep those funds. Cash you don't need for many years can go right back into your stock portfolio so you can keep ahead of inflation, Pearce said. "Make sure you have an appropriate amount of cash, and make sure you're not sitting on an enormous pile of cash that's doing nothing," he added.

Persons: Jorrell Bland, Josh Brown, Tony Roth, haven't, Wilmington Trust's Roth, Roth, Cash, Jerrod Pearce, Goldman Sachs, Marcus, Pearce, — CNBC's Michael Bloom Organizations: Nasdaq, Federal Reserve, Mitlin, Ritholtz Wealth Management, Wilmington Trust Investment Advisors, JPMorgan Equity, Wilmington, Creative Planning, Bread, Bread Financial, Citizens Financial, Treasury Locations: Wilmington, Treasurys

☆ Municipal bonds will perform despite macro headwinds, says Franklin Templeton's Jennifer Johnston
▼ + stars: | 2023-05-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMunicipal bonds will perform despite macro headwinds, says Franklin Templeton's Jennifer JohnstonJennifer Johnston, Franklin Templeton SVP and director of municipal bond research, joins 'The Exchange' to discuss the relationship between MUNIs and the debt ceiling, navigating market headwinds, and the impact of inflation on employee hiring.

☆ Washington is at an impasse on the debt ceiling. Here’s what that might mean for your portfolio
▼ + stars: | 2023-05-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Income-focused investors seeking yield and safety in Treasury bills are likely nervous as debt ceiling rhetoric heats up in Washington, but they should take a breather before they dump these assets. In the short-term Treasury market, investors are already showing some signs of anxiety. In that case, holders of short-term T-bills could see declines in their portfolio values as yields spike, he added. Review your holdings Now could be a good time to review your bond holdings, particularly the short-term T-bills that are seeing a big jump in yields. But the longer-term advice is to snap up longer-dated bonds to prepare for the day the Federal Reserve starts to dial back its tight monetary policy.

Persons: Joe Biden, Biden, Kevin McCarthy, Hakeem Jeffries, Janet Yellen, Yellen, Kathy Jones, Gustavo Schwenkler, Jones, Thomas McLoughlin, McLoughlin, Christine Benz, Jamie Hopkins, — CNBC's Michael Bloom Organizations: Treasury, Schwab Center, Financial Research, Santa Clara University Leavey School of Business, Federal Reserve, UBS, Morningstar, Carson Group Locations: Washington, D, U.S

☆ These short-term muni ETFs can give investors a healthy tax-free yield
▼ + stars: | 2023-03-30 | by ( Jesse Pound | ) www.cnbc.com time to read: +5 min

Municipal bond funds can be particularly attractive to investors who face a high tax burden, because their payouts are tax exempt. The new funds haven't been active long-enough to show an official yield, but the more established iShares Short-Term National Muni Bond ETF (SUB) has a tax-equivalent yield of 4.74%. Another factor in favor of municipal bonds is the uncertain economic environment and fear of a possible recession. The BulletShares fund family from Invesco offers several different muni funds with different maturity target dates for investors looking for more specific time-frames. That group expanded with the Invesco BulletShares 2032 Municipal Bond ETF (BSMW) , which launched on March 1.

☆ Stocking up on income-paying assets? Here’s how to maximize their tax efficiency
▼ + stars: | 2023-03-04 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

The calculus of tax optimization Tax optimization begins with the three types of investment accounts available to investors: taxable brokerage accounts, tax-deferred accounts such as 401(k) plans and individual retirement accounts, and tax-free accounts like Roth IRAs. Tax-deferred accounts, meanwhile, allow money to accumulate free of taxes – but you're on the hook for income taxes when you take withdrawals. Your individual tax situation will also be a key factor in determining which income assets are best for you and where you should hold them. However, investors in a low tax bracket might be better off going for taxable bonds – which tend to pay higher yields than municipal bonds. Asset location Taxable brokerage accounts are generally a good place to hold T-bills if you're going to tap the money soon.

☆ The best fixed income deals for investors as interest rates surge higher
▼ + stars: | 2023-02-28 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investors searching for income were buoyed by the move higher in the 10-year Treasury yield, but there are also some other opportunities to bring in some cash. "They can blend A with AA and AAA and you can get better yields," Weinberg explained. In fact, a good signal to buy munis is when their yields are at least 85% of corresponding Treasury yields, he said. Investors can also buy municipal bond funds to get exposure to the market. Investors can also get exposure through a diversified exchange traded fund, such as the iShares iBoxx $ Investment Grade Corporate Bond ETF .

☆ A lot of opportunity and low risk in munis, says Parametric's Nisha Patel
▼ + stars: | 2023-02-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailA lot of opportunity and low risk in munis, says Parametric's Nisha PatelNisha Patel, Parametric managing director, joins 'The Exchange' to discuss municipal bonds and whether or not investors should consider them.

☆ After Muni-Bond ‘Bloodbath,’ Expectations for 2023 Are Muted
▼ + stars: | 2022-12-27 | by ( Heather Gillers | ) www.wsj.com time to read: 1 min

State and local government bonds are on track to post their worst yearly performance since 1981, a deep slump for an investment prized for safety and stability. “This year was a bloodbath,” said Nicholos Venditti, a municipal bond fund portfolio manager with Allspring Global Investments. “It was a bloodbath in munis the same way it was across all asset classes.”

☆ Munis are set up to have a good year in 2023, says Appleton's Jeff Johnson
▼ + stars: | 2022-12-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMunis are set up to have a good year in 2023, says Appleton's Jeff JohnsonJeff Johnson, Appleton Partners senior vice president, joins 'The Exchange' to discuss the outlook for municipal bonds in 2023.

☆ Next three months the best time to get into munis, says NewFleet's David Albrycht
▼ + stars: | 2022-11-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNext three months the best time to get into munis, says NewFleet's David AlbrychtDavid Albrycht, NewFleet Asset Management president, joins 'Closing Bell: Overtime' to discuss opportunities in the fixed income sector.

☆ Beauty of muni bonds is tax-free income. Here are three key takeaways for investors
▼ + stars: | 2022-11-15 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +6 min

Municipal bonds, or munis, have outperformed other bonds this year, but have still slumped. "We suggest that if you're investing in municipal bonds, individual bonds, you invest in 10 different issues with different credit risks," he said. Investing differs from stocks Muni bonds serve a different goal in a portfolio than assets such as stocks, which you hope go up in value over time. "There's typically some price appreciation with it but it's hard to bank on price appreciation unless you're a very active muni bond trader," said Tyner. Diversified muni bond mutual funds are also a good option for investors, giving access to the muni market without having to take on the risk of buying individual bonds.

☆ Vanguard's Paul Malloy on the state of munis: It's the best investment in fixed-income
▼ + stars: | 2022-10-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailVanguard's Paul Malloy on the state of munis: It's the best investment in fixed-incomePaul Malloy, Vanguard head of municipal principal investment, joins 'The Exchange' to discuss the state of municipal bonds.

☆ Market rout has muni bonds looking attractive. How to add them to your portfolio
▼ + stars: | 2022-09-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

"Uncertainty around how high interest rates will go has driven redemptions in muni bond funds," he explained. Whenever we have a chance to add to muni bonds now, we do so." For instance, you can go to Fidelity Investments' website and access more than 50,000 municipal bonds as new issues or through dealers on the secondary market. Here are five Morningstar five-star rated muni bond funds. "Many closed-end bond funds are trading at prices that are below their net asset value," he said.

☆ Watch CNBC's full interview on munis with Schwab Center's Cooper Howard
▼ + stars: | 2022-09-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview on munis with Schwab Center's Cooper HowardCooper Howard, director and fixed income strategist at the Schwab Center for Financial Research, joins 'The Exchange' to compare muni bonds and corporate bonds, as well as discuss the impact rate rises have on muni borrowing costs and the overall income benefits these hikes present investors.

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