Investors Expect Tepid Returns for High-Yield Munis After Stellar Year
- A gauge tracking high-yield munis surged 9.2% in 2023
- Supply and demand dynamics supporting such debt remain strong
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Money managers don’t anticipate another banner year for high-yield municipals, one of the best-performing sectors of US debt in 2023.
Junk muni bonds posted a 9.2% advance for the full year, the most since 2019. Returns were buoyed by a lack of high-yield supply and a widespread market rally starting in November.