
US municipal bond quarterly market recap and outlook
Get an update from the Invesco Municipal Bond team on the muni bond market and their outlook on what may be ahead.
Industry’s 2nd largest high yield municipal bond manager and 5th largest municipal bond manager.1
Our team has been managing municipal bond assets on behalf of clients for nearly half a century.2
This leading global investing benchmark recognized our performance across seven strategies in 2024.3
Municipal bonds have a history of offering attractive yields and income free from federal and, in some cases, state income taxes. As the 5th largest municipal bond manager by assets1, we have the ability to access preferred market opportunities and gain valuable market insight.
Mark Paris, CIO and Head of Municipal Bond investing describes how municipal bonds can appeal to a wide range of investors.
Mark Paris:
Municipal bonds can be appealing options for a wide range of investors, especially those looking for tax-exempt income, but not all municipal bond managers are created equal. Here are three reasons to partner with Invesco for your municipal bond needs.
First, we offer a broad suite of municipal bond strategies from short-term high-grade portfolios to long-term high-yield strategies and everything in between. We offer potential solutions for a variety of investor needs, and you can access these strategies through mutual funds, ETFs, and separately managed accounts.
Second, we have an expert team with access to unique opportunities. Our municipal credit analysts average more than 20 years of experience, making them some of the industry's most seasoned analysts. They use a bottom-up in-depth credit research process. Every bond is thoroughly vetted and receives an internal rating before making it into one of our portfolios. Our portfolio managers make informed investment decisions by combining experience-based knowledge with market trends to discover attractive relative value opportunities.
Our size is another advantage. We're one of the five largest municipal bond managers by assets, a position that allows us the ability to access preferred market opportunities and gain valuable market insight. As a result, we tend to be a first call to over 120 national and regional municipal bond dealers.
These established relationships allow us to achieve superior execution in our daily transactions. This value-oriented combination of proprietary research and integrated risk management allows us to create highly diversified portfolios that aim to maximize risk adjusted returns
Third, we're here to enhance your total client experience. Helping your clients generate competitive tax-exempt income through municipal bonds is just one way we can strengthen your total client experience. At Invesco, we're committed to helping you connect with your clients, enhance your business, and optimize your portfolios through our full suite of solutions across asset classes. Let's start the conversation today. Reach out to your Invesco representative to learn more about Invesco's municipal bond solutions.
This information is intended for US residents.
This should not be considered a recommendation to purchase any investment product.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
This does not constitute a recommendation of any investment strategy for a particular investor. There is no guarantee these strategies will be able to meet their objectives. Past performance cannot guarantee future comparable results.
Before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in the prospectus at invesco.com.
Ticker | Fund name | Vehicle | Duration | Download |
---|---|---|---|---|
ORNAX | Invesco Rochester® Municipal Opportunities Fund | Mutual Fund | Long | Fact sheet |
ACTHX | Invesco High Yield Municipal Fund | Mutual Fund | Long | Fact sheet |
ISHAX | Invesco Short Duration High Yield Municipal Fund | Mutual Fund | Intermediate | Fact sheet |
IROC | Invesco Rochester High Yield Municipal ETF* | ETF | Long | N/A |
OIA | Invesco Municipal Income Opportunities Trust | Closed-End Fund | Long | Fact sheet |
*Effective after close of business February 20, 2025, The Fund will invest at least 75% of its total assets in low-to medium-quality municipal securities. The Fund’s name will change to “Invesco Rochester High Yield Municipal ETF.” As a result of this change, the Fund will also change its ticker to "IROC".
Ticker | Fund name | Vehicle | Duration | Download |
---|---|---|---|---|
VKMMX | Invesco Municipal Income Fund | Mutual Fund | Long | Fact sheet |
OPTAX | Invesco AMT-Free Municipal Income Fund | Mutual Fund | Long | Fact sheet |
OPAMX | Invesco Environmental Focus Municipal Fund7 | Mutual Fund | Long | Fact sheet |
VKLMX | Invesco Intermediate Term Municipal Income Fund | Mutual Fund | Intermediate | Fact sheet |
PZA | Invesco National AMT-Free Municipal Bond ETF | ETF | Long | Fact sheet |
BAB | Invesco Taxable Municipal Bond ETF | ETF | Long | Fact sheet |
IIM | Invesco Value Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
IQI | Invesco Quality Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
VGM | Invesco Trust for Investment Grade Municipals | Closed-End Fund | Long | Fact sheet |
VKI | Invesco Advantage Municipal Income Trust II | Closed-End Fund | Long | Fact sheet |
VKQ | Invesco Municipal Trust | Closed-End Fund | Long | Fact sheet |
VMO | Invesco Municipal Opportunity Trust | Closed-End Fund | Long | Fact sheet |
Ticker | Fund name | Vehicle | Duration | Download |
---|---|---|---|---|
ATFAX | Invesco Limited Term Municipal Income Fund | Mutual Fund | Short | Fact sheet |
ORSTX | Invesco Short Term Municipal Fund | Mutual Fund | Short | Fact sheet |
PVI | Invesco Floating Rate Municipal Income ETF | ETF | Ultrashort | Fact sheet |
Ticker | Fund name | Vehicle | Duration | Download |
---|---|---|---|---|
OPCAX | Invesco California Municipal Fund | Mutual Fund | Long | Fact sheet |
OLCAX | Invesco Limited Term California Municipal Fund | Mutual Fund | Intermediate | Fact sheet |
RMUNX | Invesco Rochester® New York Municipals Fund | Mutual Fund | Long | Fact sheet |
OPNYX | Invesco Rochester® AMT-Free New York Municipal Fund | Mutual Fund | Long | Fact sheet |
LTNYX | Invesco Rochester® Limited Term New York Municipal Fund | Mutual Fund | Intermediate | Fact sheet |
OPATX | Invesco Pennsylvania Municipal Fund | Mutual Fund | Long | Fact sheet |
ONJAX | Invesco New Jersey Municipal Fund | Mutual Fund | Long | Fact sheet |
PZT | Invesco New York AMT-Free Municipal Bond ETF | ETF | Long | Fact sheet |
VCV | Invesco California Value Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
VTN | Invesco Trust for Investment Grade New York Municipals | Closed-End Fund | Long | Fact sheet |
VPV | Invesco Pennsylvania Value Municipal Income Trust | Closed-End Fund | Long | Fact sheet |
Ticker | Fund name | Vehicle | Duration | Download |
---|---|---|---|---|
BSMP | Invesco BulletShares 2025 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMQ | Invesco BulletShares 2026 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMR | Invesco BulletShares 2027 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMS | Invesco BulletShares 2028 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMT | Invesco BulletShares 2029 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMU | Invesco BulletShares 2030 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMV | Invesco BulletShares 2031 Municipal Bond ETF | ETF | Target Duration | Fact sheet |
BSMW | Invesco BulltetShares 2032 Municipal Bond ETF | ETF | Target Duration | Fact Sheet |
BSSX | Invesco BulletShares 2033 Municipal Bond ETF | ETF | Target Duration | Fact Sheet |
BSMY | Invesco BulletShares 2034 Municipal Bond ETF | ETF | Target Duration | N/A |
Learn more about our municipal bond offerings and how we are driven to deliver better outcomes for clients.
A bi-weekly update that provides insight and perspective on what’s happening in the muni market.
An overview of credit fundamentals in California, New Jersey, New York, and Pennsylvania.
The income produced by municipal bonds is typically exempt from income taxes at the federal level. Municipal bonds may also be exempt from state and local taxes based on where the investor resides.
In our view, there are many good reasons to invest in the municipal bond market now.
First, muni yields are as high as they've been in 15 years following two years of unprecedented interest rate hikes by the Fed.
Second, municipal bonds have a long history of low defaults compared to corporate bonds because they fund essential American services.
Third, the municipal yield curve is steeper than the Treasury yield curve. A steep yield curve means that there is value in duration. Municipal investors who own longer dated munis may be compensated much more than those in longer dated Treasuries.
Fourth, federal, state and in some places local tax rates are high and we don't see them going down. This may provide additional value to the muni tax exemption.
Our high conviction approach to investing aims to deliver a highly competitive yield by exploiting anomalies that exist in the high yield municipal market. The Invesco Municipal Bond team employs a bottom-up, research-oriented approach to generate income-driven total return. Our experienced credit research staff works to uncover value in non-rated bonds, which may offer the potential for higher yield and total return.
We believe in giving investors choices that work for their unique needs. Invesco Rochester High Yield Municipal ETF is an actively managed exchange-traded fund that seeks current income exempt from federal income tax.
We view risk from multiple lenses and manage it using both integrated and independent approaches. First, risk management is embedded within our investment process. Second, multiple governance structures provide independent oversight and monitoring. Third comes senior management and board review.
US municipal bond quarterly market recap and outlook
Get an update from the Invesco Municipal Bond team on the muni bond market and their outlook on what may be ahead.
Five reasons why municipal bonds are compelling post-election
The current environment suggests potential positive muni bond performance ahead. Here are key reasons to consider an allocation to tax-exempt munis now.
Muni spotlight: Our approach to evaluating Housing Finance Authorities
We've updated the way Housing Finance Authorities are evaluated under our ratings methodology. Learn about the changes and get a case study of a Statewide Communities Development Authority.
Is now a good entry point for muni bond investors?
While the muni market hasn't performed as expected, the pullback may have created an interesting entry point for investors before the historically strong seasonal period.
Thoughts from the Municipal Bond Desk
Get expert insight on what’s happening in the muni market and munis by the numbers, a quick look at key data points, in the latest edition.
Invesco has many fixed income strategies to help you meet your goals, including taxable bonds, tax-free municipals, mutual funds, ETFs, and SMAs.
Learn more about our investment grade portfolios which are designed to deliver income, stability, and tax efficiency even under stressed market conditions.
Discover the potential benefits of investing in Invesco’s fixed income ETFs, such as income generation, portfolio diversification, and risk mitigation.
Source: Simfund, ss of March 31, 2025.
Source: Invesco Ltd. as of March 31, 2025.
LSEG Lipper Fund Awards. © 2025 LSEG Lipper. The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.
The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, their accuracy is not guaranteed by LSEG Lipper. Invesco California Municipal Fund Y shares were named best in-class among 29 California Municipal Debt Funds, for 10-year period ending November 30, 2024. Invesco AMT-Free Municipal Income Fund Y shares were named best in-class among 70 General & Insured Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco Rochester® Municipal Opportunities Fund Y shares were named best in-class among 38 High Yield Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco New Jersey Municipal Fund R6 shares were named best in-class among 14 New Jersey Municipal Debt Funds for the 5-year period ending November 30, 2024. Invesco Rochester® New York Municipals Fund R6 shares were named best in-class among 24 New York Municipal Debt Funds for the 5-year period ending November 30, 2024. Invesco Rochester® New York Municipals Fund Y shares were named best in-class among 23 New York Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco Pennsylvania Municipal Fund Y shares were named best in-class among 15 Pennsylvania Municipal Debt Funds for the 10-year period ending November 30, 2024. Invesco Short Term Municipal Fund Y shares were named best in-class among 28 Short Municipal Debt Funds for the 10-year period ending November 30, 2024.
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Fixed income investments are subject to credit risk of the issuer and the effects of changing interest rates. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating. Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer’s ability to make payments of principal and/ or interest. The fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the fund.
Diversification does not guarantee a profit or eliminate the risk of loss.
Invesco does not offer tax advice. Please consult a tax professional for information regarding your personal tax situation.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
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