February 03, 2026 Paul Malloy Vanguard Head of Municipals “When markets react to fiscal headlines or economic uncertainty, municipal credit quality doesn't automatically follow.
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Munis can diversify and add resilience to a portfolio
February 03, 2026 Paul Malloy Vanguard Head of Municipals “When markets react to fiscal headlines or economic uncertainty, municipal credit quality doesn't automatically follow. Most muni issuers maintain strong balance sheets and conservative debt practices, making municipal bonds a steadying force,” said Paul Malloy, Vanguard head of municipals, in a recent commentary on the personal finance website Kiplinger. He also highlights how munis can strengthen portfolio resilience by offering: Stability supported by strong local balance sheets and prudent borrowing. Diversification benefits that help buffer against volatility tied to federal fiscal headlines. Steadier income potential that helps smooth out market bumps. Read Malloy’s full commentary at Kiplinger. Related Links Article 2 min read Active Fixed Income Perspectives Q1 2026: Income in focus Jan 29, 2026 Article 2 min read Jan 29, 2026 Article < 1 min read Vanguard sees continued opportunity in long-term munis Oct 07, 2025 Article < 1 min read Oct 07, 2025 Article 2 min read A terrific environment for bonds Sep 02, 2025 Article 2 min read Sep 02, 2025 Notes: All investing is subject to risk, including possible loss of principal. Investments in bonds are subject to interest rate, credit, and inflation risk. Diversification does not ensure a profit or protect against a loss. Although the income from municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund’s trading or through your own redemption of shares. For some investors, a portion of the fund’s income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. Vanguard Information and Insights Subscribe to Vanguard. Get Vanguard news, insights, and timely analysis on the market, delivered straight to your inbox. Read our online privacy notice to learn about how we keep personal information private. You have certain cookies disabled on the Vanguard site. In order to watch videos on this site, you must agree to the use of cookies provided by YouTube. Click here to permit these cookies and watch the videos.
