2026 Municipal Market Outlook: High After-Tax Yields In An Uncertain World
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AllianceBernstein (AB)4.95K FollowersFollow5ShareSavePlay(8min)SummaryDespite volatility, muni markets finished strong in 2025, and we are optimistic for a repeat in 2026.As in 2025, the path to higher returns in 2026 won’t be a straight line.Compelling yields, a steep yield curve, strong credit fundamentals and an easing Fed continue to offer attractive entry points for muni investors.Fundamentals remain strong; most municipalities are in good financial health, with near record-high reserves and layers of budget flexibility at their discretion. designer491/iStock via Getty Images By Matthew Norton & Daryl Clements High yields, a flattening curve and strong demand appear poised to propel munis. Despite volatility, muni markets finished strong in 2025, and we are optimistic for a repeat in 2026. We expectThis article was written byAllianceBernstein (AB)4.95K FollowersFollowAB is a research-driven investment firm that combines investment insight and innovative thinking to deliver results for our clients. At AB we believe that research excellence is the key to better outcomes and as a result we have built a global firm with exceptional research capabilities. We offer a broad array of investment services that span geographies and asset classes to meet the needs of private clients, mutual fund investors and institutional clients around the world.