As Fed Risk Recedes, Low-Coupon Munis Show Way to Pick Up Yield

  • Half a percentage point difference on Massachusetts bonds
  • ‘A strategy to outperform,’ says Ramirez & Co.’s Block

With U.S. bond yields near record lows, municipal-debt investors are finding a way to pick up a little extra return: Buying lower-coupon securities, which provide fatter payouts because they’ll be harder hit once interest rates start to rise.

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