Thornburg: Best Munis Are Deeper Now That Yield Curve Is Steeper

The steepness of the yield curve is rewarding investors for upping their interest rate risk, says Nick Venditti, associate portfolio manager for Thornburg municipal bond portfolios. As a result, Venditti says he is putting more money to work along the further rungs of the ladder, primarily 8-10 years out. He also says muni-bond fund managers are closely watching Detroit's bankruptcy hearings to see if bondholders are being treated fairly compared to pension holders.

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