At Equus, we believe that municipal bonds are one of the most overlooked and misunderstood asset classes. Many individuals and investment professionals view the asset class as "low yield, safe, and high quality." We view municipal bonds a little differently. We see an asset class that provides excellent portfolio diversification, competitive tax-equivilant yields, and attractive total return opportunities.
Tax Equivalent Yields
Municipal bonds provide competitive yields for investors in the highest income tax bracket. Bonds purchased in the state in which the investor resides are exempt from both federal and state income taxes.
Total Return Opportunities
The market dynamics create excellent total return opportunities for well informed investment managers. The market is dominated by retail investors who typically will sell during times of volatility.
Municipal bonds historically have had a low correlation to major asset classes. Unique revenue streams add to the diversification benefit.