Franklin Municipal Enhanced Income SMA Q3 2025 Commentary
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Franklin Templeton4.62K FollowersFollow5ShareSavePlay(4min)CommentsSummaryIn the third quarter of 2025 (Q3), new issuance of municipal bonds exceeded the average seen in the past few years, driven by a 34% year-over-year surge in July issuance.Our exposure to higher-quality bonds hurt relative returns as lower-rated securities, such as BBB rated bonds (which was the best-performing rating category), outperformed during the quarter.Muni bond issuance exceeded historical averages in Q3 as issuers, who had been reluctant to issue new bonds under the looming threat to their tax-exempt status, came to market. Wirestock/iStock via Getty Images Key Takeaways Markets: In the third quarter of 2025 (Q3), new issuance of municipal (MUNI) bonds exceeded the average seen in the past few years, driven by a 34% year-over-year surge in July issuance. By quarter end, the yield on the benchmark 10- year US This article was written byFranklin Templeton4.62K FollowersFollowFranklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.