https://www.forbes.com/sites/simonmoore/2018/09/26/boosting-bond-yield-without-the-risk-using-munis/#1881f062748a In the current market environment it’s tempting to want to juice more yield from your bond portfolio. Especially because those with longer memories will notice that bond yields, though rising, remain low by historical standards. Often higher yields can come with a catch, namely that when you’re bumping up your yield, then you are probably also taking on more risk. However, in certain situations, owning municipal (muni) bonds can effectively increase your after-tax returns without necessarily adding more risk to the bargain. Munis can be thought of one of the few free lunches available when investing, this is due to munis’ tax treatment which we’ll explain.
