Municipal bonds generally have much lower default rates (historically ~0.03%) compared to corporate bonds (~2.5%).
If you are in a low tax bracket, you may be better served by the higher yields of taxable corporate bonds. Article: The 2026 Case for Municipal Bond Funds should i buy municipal bond funds now
Whether you should buy municipal bond funds now depends largely on your and risk tolerance , though current April 2026 market conditions present a mix of attractive valuations and recent volatility. Market Outlook: April 2026 Municipal bonds generally have much lower default rates
Are Tax-Free Municipal Bonds Really Worth It? Key Considerations Market Outlook: April 2026 Are Tax-Free Municipal Bonds
Heavy new issuance—projected to reach $600 billion in 2026—can create technical headwinds and put pressure on prices if demand softens.
Inflation concerns and rising oil prices caused a sharp rise in yields in March, which typically leads to a decline in bond prices.
Despite volatility, tax-exempt funds and ETFs saw strong positive net inflows of approximately $32 billion through late March. Who Should Consider Buying?