Municipal Bonds Are the Apple of Fixed Income Investors’ Eyes
The yield in question—known as yield to worst—is the lowest rate the investor can expect to earn short of a default."
"Still, investors can’t get enough of the bonds," the article said, noting the high interest in munis. "Prices have surged even though outstanding muni debt has swelled by more than $100 billion in the year ended March 31, according to Federal Reserve data. Cities and states could probably sell an additional $89 billion in bonds without meaningfully driving down prices, according to an analysis of lending capacity by Municipal Market Analytics."