Michael Wagner Discusses the Increased Interest in Municipal Bonds with Bloomberg

Last month, the Biden administration released a tax plan that proposed increased tax rates on corporations, the wealthy and capital gains. While there is no guarantee that the Biden administration’s tax proposal will come to fruition, the potential is enough to drive many wealthy families toward tax-exempt municipal bonds. In fact, according to Refinitiv Lipper US Fund Flows data, high-yield municipal funds saw record weekly inflows in April.

“Money is so emotional,” Omnia Family Wealth Co-Founder and Chief Operating Officer Michael Wagner recently told Bloomberg when discussing the increased interest in muni bonds. While the fear of taxes is clearly driving interest in muni bonds among wealthy families, Wagner is a proponent of letting fundamentals, not fear, drive investment decisions. As the economy recovers and yields rise, Wagner believes there is a possibility that bond prices get hit. “If we felt there were opportunities in the muni market, we’d be right there,” he told the publication.

 

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