Why municipal bonds can win on an after-tax basis

Apr 2, 2026

Karl Zeile, a fixed income portfolio manager with 30+ years specializing in municipal bonds, explains why munis matter now. He outlines muni market structure, tax advantages and a practical framework for using munis in portfolios. Karl also discusses market dynamics after 2025, risks like credit attachment, and how curiosity and collaboration shape investment decisions.

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INSIGHT

Munis Finance Everyday Infrastructure

Municipal bonds fund tangible public projects you encounter daily, creating a direct link between credit and economic purpose.
Examples Karl gives include the MTA, LAX people mover, hospitals, universities, charter schools and senior living facilities.

INSIGHT

Size And Fragmentation Of The Muni Market

The U.S. muni market is roughly $4 trillion and has over 60,000 issuers, more than 10x the issuer base of corporates.
That extreme issuer breadth means wide variation in credits and requires deep, issuer-level research.

ADVICE

Use Munis As Bonds First

Treat municipal bonds as bonds first: use them for diversification, capital preservation and income.
Do homework on credit quality because munis range from AAA to below-investment-grade, and tax exemption adds after-tax value.

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Did you know municipal bonds are deeply woven into everyday life? Karl Zeile, a fixed income portfolio manager with 32 years of industry experience, explains why the tax advantage of muni bonds is more relevant than ever. He lays out a practical framework for how financial advisors and investors can think about using them in today's market. #CapGroupGlobal

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