Attached are two graphs prepared by Fidelity Investments that illustrate the market‐perceived relative “riskiness” of municipal bond sectors based on required market spreads.
Of note, general obligation bonds, water/sewer revenue bonds and tax revenue bonds are the safest sectors by this measure. Education bonds are also deemed in the “safe” category, but with the ongoing uncertainties surrounding the reopening and future financial status of colleges and universities, we currently shy away from this sector.
