An asset class that includes bonds that are issued by US state and local governments and have lower credit quality ratings. That means there’s a higher chance that the entity won’t be able to make payments — but because the risk is greater, high-yield bonds also offer higher interest rates than other bonds. Municipal bonds’ interest is exempt from federal (and potentially state) taxes.
Ellevest Digital and Premium investment portfolios that include High-Yield Municipal Bonds in the investment mix do so through mutual or exchange-traded funds (ETFs), not individual bonds.
Comments
0 comments
Article is closed for comments.