Exploring Opportunities in Municipal Bonds: A 2025 Perspective

In the ever-evolving landscape of investment opportunities, municipal bonds have emerged as a compelling option for investors seeking stability and attractive yields. As we navigate through 2025, understanding the dynamics of municipal bonds can provide valuable insights into their potential benefits and risks.

The Current Landscape: Municipal bonds, often referred to as "munis," are debt securities issued by local governments to fund public projects. In recent months, the market for municipal bonds has experienced notable shifts. As Matt DeLorenzo highlights in our quarterly video, "We saw municipal bond yields move higher, presenting an opportunity to extend duration and increase exposure for our clients."

Factors Driving Opportunities: Several factors contribute to the current opportunities in municipal bonds. The negotiation of the Big Beautiful Bill raised concerns about the potential loss of tax advantages, leading to a supply-demand imbalance. This, coupled with a volatile rate environment, has resulted in higher yields, making munis an attractive option for investors.

As we continue to monitor the evolving economic landscape, municipal bonds offer a unique opportunity for investors seeking stability and attractive returns. By staying informed and strategically positioning their portfolios, investors can capitalize on the potential benefits of munis in 2025 and beyond.

Read United's latest quarterly letter HERE.

For more insights, watch United's latest Quarterly Video. Questions? Contact an advisor at United Asset Strategies.

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Commentary as of Wednesday, July 30th 2025. Please keep in mind this material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is intended for educational purposes only.