Interest rate hikes and geopolitical tensions have caused great market volatility. However, thanks to high credit ratings and low correlation with other asset classes, US municipal bonds could potentially offer investors a way to mitigate risk and sail through the current turbulent times.

US municipal infrastructure bonds are issued by US states, cities or local government bodies. Their history can be traced back more than a century when the first recorded US municipal bond was issued by the New York City government in 18121 for the construction of a canal.