00:00 Speaker A

So what would you tell investors who have not previously invested in munis about the best opportunities for getting in, especially those who might be concerned about the discount they’re getting, given just all of the discounting that’s already happening in their investment portfolios?

00:18 Speaker B

Yeah, I mean, I think relative to other fixed income asset classes, I would just say it’s a, uh, it’s an asset class that has traditionally been very safe. These are essential service monopolies, like a water and sewer credit, like paying your property taxes for a general obligation bond. So if you’re willing to go in and to, uh, be on the safer side right now on a, uh, tax exempt basis, intermediate munis are yielding about 4.3%, which on a taxable equivalent basis, if you’re in the highest bracket, it’s about a 7%. And just looking back here over the last 10 years, that’s in the 98th percentile for yield. So very much munis are on sale. And if you’re willing to take a little bit more risk, uh, high yield funds are offering yields in that, let’s call it five and three quarters, which is an equivalent, uh, in the high eights, low nines. So, um, you know, for the investor base that is wanting to get into fixed income is, uh, concerned about tariffs, municipalities really don’t have much, uh, impact from, uh, or are subjected to any of the tariffs. Uh, it’s a great time to be investing in, given how much they’ve lagged here on a year-to-date basis. We think the, uh, the entry point is a very attractive one.

02:48 Speaker A

Yeah.