BlackRock Sees Improving Muni Returns This Year, Haskell Says

Municipal bonds are poised for a solid year after lagging US Treasuries in 2025 as market conditions stabilize, according to Pat Haskell, head of the municipal bond group at BlackRock Inc.

He expects investment-grade muni debt to deliver “mid- to upper-single-digit returns” for investors, while the high-yield segment of the market will could earn “high single digits to low double digits,” Haskell said in an interview.

In 2025, the muni benchmark earned 4.25% and the high-yield index 2.46%, both trailing the more than 6% gain in the US Treasury total return index, according to data compiled by Bloomberg. ...