There’s a lot going for the municipal market as we head into 2023. Higher starting yields mean more income for investors. This income could help mitigate the potential negative impact of any future rate hikes. And investors are earning this higher income at very attractive prices (valuation). Spreads were incredibly narrow at the beginning of 2022 - meaning munis were relatively expensive. Following the broad market sell-off, spreads widened, and yields are now roughly 260 basis points higher than at the beginning of the year.