How Recent Rate Volatility Impacts Municipal Bonds

What is one of the key benefits of municipal bonds in a volatile economic environment?

• They are immune to interest rate changes.

• They provide safety and security.

• They offer high returns.

• They are highly volatile.

What is the current outlook for the credit quality of municipal bonds?

• It is at its weakest in 30 years.

• It is at its strongest in 30 years.

• It is declining rapidly.

• It is unpredictable.

How have shorter modified duration bonds performed in recent times?

• They have been defensive outperformers.

• They have underperformed.

• They have shown no change.

• They have been highly volatile.

What economic condition is indicated by the flattening of the yield curve?

• Rapid economic growth

• Economic slowdown

• Stable economy

• High inflation

What should investors consider when thinking about future yield curve inversions?

• Selling all bonds

• Ignoring the yield curve

• Investing in long-term bonds only

• Positioning portfolios to take advantage of potential changes