Archive · 13 Jan 2026
MacKay Shields Sees Value in Long-Dated Munis
MacKay Shields, a company that invests in municipal bonds, says that bonds that mature in 12 to 22 years are a good deal right now.
Most big investors prefer bonds that mature in 10 years or less, so these longer-dated bonds are less popular and cheaper.
The report shows that 30-year municipal bonds offer about 85% of the yield of similar US Treasury bonds, and 20-year municipal bonds offer about 81%.
This means that investing in these longer-dated bonds could be a smart choice, especially as interest rates change in the future.
MacKay Shields finds value in long-dated municipal bonds, particularly those maturing in 12 to 22 years.
Most major investors prefer bonds with maturities of a decade or less, leaving long-dated bonds less crowded.
As of January 8, 30-year municipal bonds offer about 85% of the yield of similar Treasuries, and 20-year munis offer 81%.
The relative value of municipal bonds has reached its most expensive level since May 2024, with 10-year AAA munis offering about 62% of the yield on similar Treasuries.
John Loffredo, co-head of MacKay Municipal Managers, emphasizes the importance of bond positioning on the curve and investor flexibility in 2026.
- Who
- MacKay Shields, a municipal investment firm
- What
- Identified value in long-dated municipal bonds
- When
- Report released on Monday, January 8, 2024
- Where
- United States
- Why
- Long-dated bonds are less crowded and offer better relative value compared to shorter-dated bonds
- Investment Focus
- Long-dated municipal bonds
- Preferred Duration
- 12 to 22 years
- Relative Value
- 85% of Treasuries for 30-year munis, 81% for 20-year munis
- Report Date
- January 8, 2024
- Investment Vehicle
- Separately managed accounts