Municipal market strategists and money managers are recommending high-coupon tax-exempt "cushion" bonds and pre-refunded issues for short-term investors seeking higher-yielding deals.

While the bonds generally carry the interest rates of long-term investments, they give investors the benefits of short-term securities because their early call and redemption provisions make them less susceptible to interest rate fluctuations.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.