https://www.financial-planning.com/news/the-risks-and-rewards-of-high-yield-municipal-bondsAmid low interest rates, clients looking for a tax break and more income may be tempted to consider high-yield municipal bonds.
The yield for a 10-year muni bond rated BAA was 3.27% as of Aug. 10, and yields for 10-year-plus BBB-rated munis were well past 4%. The bonds are exempt from federal, local and state taxes, pushing the effective yield higher for investors in upper tax brackets.
