angle-left null Munis in a Rising Rate Cycle
Manager Insights

Munis in a Rising Rate Cycle

White Paper Manager Insights Active Fixed Income
April 2018
Munis in a Rising Rate Cycle

Authors and Contributors

U.S. Municipal Bond Team

U.S. Municipal Bond Team

The Federal Reserve (the Fed) is expected to raise short-term interest rates several more times this year. As the Fed tightens monetary policy, investor concerns about their municipal bond investments may also be on the rise. Importantly, our seasoned Municipal Bond team has a history of managing portfolios through similar cycles. Historical analysis of municipal bond behavior relative to U.S. Treasuries in rising rate environments points to potential opportunity for attractive tax-exempt yields without the volatility commonly associated with Treasuries.

On January 31, 2018, The Boston Company and Standish merged into Mellon Capital to form a combined entity, BNY Mellon Asset Management North America Corporation. Effective January 2, 2019, this entity was renamed Mellon Investments Corporation.