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DISCLOSURES

The opinions expressed herein are those of Asset Preservation Advisors, LLC ("APA") and are subject to change without notice. This material is not financial advice, or an offer to sell any product. APA reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs, and there is no guarantee that their assessment of investments will be accurate. There is no guarantee that APA’s strategies or recommendations will equal or exceed expectations discussed. Asset Preservation Advisors, LLC is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about APA including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request or by calling (404) 261-1333. www.assetpreservationadvisors.com Asset Preservation Advisors Copyright 2024

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YIELD COMPARISON REPORT - AS OF 5/19/22

Municipals have dislocated from taxable fixed income sectors as sustained mutual fund selling continues to pressure the tax-exempt market. Year to date, muni mutual funds have seen outflows of $63 billion—a significant move but one that has created an entry point at the highest sustained levels since 2009 for certain parts of the curve. The 10-year AAA muni spot is trading at 102% of Treasuries, vs. the 1-year low of 56.5% and the long-term average of 85-90%. Additionally, as is detailed in the table below, AAA municipal taxable equivalent yields offer a measurable pick up above AA and A-rated corporate counterparts across the curve. Finally, the municipal credit picture continues to look strong, with many issuers experiencing record tax collections while continuing to reap the benefits from the outsized federal stimulus. As a result, with current market conditions, we believe tax-exempt municipals look attractive relative to other fixed income alternatives.


“As a result, with current market conditions, we believe tax-exempt municipals look attractive relative to other fixed income alternatives.”




Source: Municipal Market Data, Bloomberg.



*Highest Federal Tax Bracket of 40.8% includes the 3.8% net investment income tax.

Source: Municipal Market Data, Bloomberg.



 

Disclosures:


Past performance is not a guarantee of future results. Investing involves risk including the potential loss of principal. APA is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about the advisor’s investment advisory services can be found in its Form ADV Part 2 or Form CRS, which is available upon request.    


APA-2205-25

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