Investing Ideas

The 2024 election could affect opportunities for municipal bond investors

How tax policies and federal spending may play a role in the muni market.

By: Michael Schmitt Cormac Cullen Michael Maka Elizah McLaughlin

Updated: 9/27/2024

Key Takeaways

The 2024 U.S. elections could impact the municipal bond market—as well as particular regions and subsectors.
Much of the campaign rhetoric is noise, but some investors may overreact to the municipal bond implications of possible election outcomes.
Our portfolio managers and analysts keep a constant eye on what various proposals might mean for their sector, but we recognize that some proposed policy rhetoric is unlikely to be implemented—or may be implemented in a watered-down way such that it has no meaningful impact.
Aside from the potential shift in the political landscape, other factors such as fiscal spending, monetary policy, and supply/demand market dynamics could play a role.

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The 2024 election could affect opportunities for municipal bond investors

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