Stay Engaged. Yields Can Move Quickly.

In the latest Muni Minute, HilltopSecurities’ Tom Kozlik joins John Muschalek to break down the forces shaping municipal markets heading into summer — from geopolitical uncertainty and inflation pressure to strong municipal bond demand and Tom’s renewed concerns around the municipal tax exemption.

While yields remain attractive, Kozlik notes that investors may still be getting a “second look” at levels that were not expected to last this far into 2026. At the same time, more than $20+ billion has flowed into municipal institutional funds so far this year, signaling continued demand as investors look to municipals as a potential safe haven.

In this episode:

• Why rates and municipal yields could stay higher for longer
• How volatility is shaping investor behavior resulting in strong fund flows
• Why the municipal tax exemption could return to the policy spotlight
• What to watch across credit, supply, demand, and broader economic growth
• Why investors should stay engaged before yields potentially move lower

As Kozlik explains, waiting for the market to “cool off” may come with a cost — because when conditions shift, yields can move quickly.