“Yields in my opinion are still of value, but lately you’re looking at 3.5% or 4% on long-dated deals, and individuals are still buying despite not hitting that magical 5% return on longer-dated bonds,” Walsh says. On Thursday, the State of California sold a $2 billion bond offering that featured a top yield of 4.13% for the longest-dated 26-year maturity. Walsh reminds investors that muni bonds are best viewed as long-term income-generating investments. “Yes, it’s a dynamic security, but most individuals are buying it and holding it,” he says. “They’re looking for safety and looking for income. You shouldn’t just go chasing returns.”

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