16641 UK EU Beyond Treasuries Munis Final

FINANCIAL PROMOTION/MARKETING MATERIAL FOR PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT

BEYOND TREASURIES THE CASE FOR TAXABLE US MUNICIPAL BONDS AUGUST 2026

EXECUTIVE SUMMARY In our view, US municipal bonds continue to offer compelling advantages relative to US Treasuries, supported by resilient municipal credit fundamentals, attractive relative valuations and higher-quality income opportunities.

• Municipal credit conditions remain favourable, with state reserve balances well above pre-pandemic levels despite a more challenging fiscal backdrop.

• Municipal bonds carry credit ratings comparable to those of US Treasuries yet offer spreads that exceed those available on similarly rated investment grade corporate bonds.

• Selected taxable municipal revenue bonds offer attractive yields and spread compensation relative to Treasuries, corporate bonds and other developed market sovereign debt, creating opportunities for investors seeking high-quality income.