municipal bonds
Geopolitics vs Inflation: Why Zero-Coupon Bonds Suffer
Geopolitics vs Inflation: Why Zero-Coupon Bonds Suffer In 2024, zero-coupon municipal bonds lost about 3.2% of total return because they lack interim cash flow and their long duration amplifies inflation risk as Treasury yields climb. Geopolitical shocks - from the U.S.-Saudi nuclear deal to Middle-East oil disruptions