To ensure an optimal and secure experience, please upgrade to the latest version of your browser.
Tax equivalent yields for municipal bonds versus taxable bonds
Sources: BNY Mellon Investment Management and Morningstar as of June 30, 2019. The yield to worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting. This metric is used to evaluate the worst-case scenario for yield to help investors manage risks. The Tax-Equivalent Yield assumes a federal tax bracket of 37%. Past performance is no guarantee of future results.
US municipals versus comparative corporate issuer (default rates)
Source: Moody’s Investors Service, as of July 2018, average corporate debt recovery rates for senior unsecured bonds 1987-2017.
1 The category shows the average performance of muni cohorts over a 10-year period. A bond that is Investment Grade has a rating of Baa or higher by Moody's. A Speculative Grade has a rating lower than Baa from Moody's Investors Service.
2 Global corporates refers to all non-financial and financial corporates globally as tracked by Moody’s.
5-year correlations among asset classes
Source: BNY Mellon Investment Management and Morningstar, as of June 30, 2019. Past performance is no guarantee of future results.
*Source: Moody’s Investors Service, as of July 2018, average corporate debt recovery rates for senior unsecured bonds 1987-2017.
**Source: Bloomberg as of October 11, 2019. Weekly data, Feb 3, 1989 to Oct 11, 2019.
Municipal income may be subject to state and local taxes. Some income may be subject to the federal alternative minimum tax for certain investors. Capital gains, if any, are taxable.