Western Asset Fixed Income
Muni Monthly: June 2026
July 21, 2026
Western Asset: The Muni Monthly covers performance, supply and demand technicals, fundamentals and valuations.
Leaders in Municipal Bond Investing
One firm, a complete suite of municipal solutions, expertise you can rely on.
With yields at multi-year highs, municipal bonds offer compelling tax-free income opportunities.
As one of the largest US municipal bond managers, Franklin offers a full suite of tax-free solutions, leveraging 40+ years of experience and expertise to navigate market cycles, with portfolios spanning national, state-specific, and state-preference strategies across different investment objectives and risk profiles.
Deep experience and expertise
Our team of over 40 investment professionals averages 20+ years of experience in municipal bond strategies, ensuring expert management in a large, fragmented market.
Unparalleled investment options
With over 60 municipal bond strategies we offer the widest range of solutions to meet investors’ unique tax-free income needs and goals.
Proven performance
More 4- and 5-star rated municipal strategies than any other investment manager.1 Franklin Templeton delivers not just variety, but performance that stands out.
Our full suite of municipal strategies
From national to state-specific to state-preference; short, intermediate, or long-term; high quality or high yield; tax-managed, tax-aware or laddered, we offer the broadest range of tax-free solutions for investors.
National strategies
| Fund name | Vehicle |
|---|---|
| Franklin Federal Limited-Term Tax-Free Income Fund | Mutual Fund |
| Franklin Short-Term Municipal Income ETF (FTMS) | ETF |
| Franklin Limited Maturity Municipal SMA | Separate Account |
| Western Asset Short Duration Municipal Income Fund | Mutual Fund |
| Western Asset Short-Term Muni Portfolios | Separate Account |
State-specific strategies
For investors seeking greater tax efficiency, we offer a full range of state-specific and state-biased strategies, tailored to align with individual state tax profiles. In addition, our municipal bond SMA platform supports fully customized mandates, including national portfolios with state-specific exclusions, providing flexibility to meet unique tax or investment objectives.2
Mutual Funds
FALZX
Franklin Alabama Tax-Free Income Fund
Separately Managed Accounts
State preference
Alabama state-preference mandate available
How to choose the right municipal bond strategy
Choose a strategy based on your client’s income needs, risk tolerance, and tax situation.
Short duration
for clients needing liquidity or in rising rate environments
Intermediate/core
for steady, balanced tax-free income
High yield
for clients seeking higher income and willing to take more credit risk
State-specific
for clients in high-tax states seeking additional tax benefits
Want more? Access our muni strategies through SMA and ETF solutions.
SMA solutions
Every investor is unique, and so is our SMA approach. We offer a wide range of customizable options that include total return strategies, ladders, state-specific overlays, in-kind funding, tax-loss harvesting, and more. With more than 13,000 customized accounts and $15+ billion under management, we can find a solution to fit almost any investor need.
Active ETF advantage
The municipal bond market is constantly evolving. To truly stay head and maximize your potential, you need more than just broad exposure. Designed for investors seeking income, diversification, or risk management, our active muni ETFs provide the expertise and flexibility to help you achieve your objectives with confidence.
Expand your Muniverse
We sit down with guests Rick Polsinello from the Franklin Templeton Institute and Ben Barber of Franklin Templeton Fixed Income to discuss the US economy and the municipal bond market in 2026. They cover why they view the economy as resilient, some key investment themes for the year, and the growing opportunity within municipal bonds.
On the air
In the brief
Municipal Bond Market Monthly Brief
Don't sleep on Munis
Why Munis Now
On screen
Inside the muni market: Common misconception
In a complex, fragmented market, our deep research and diverse platform turn muni misconceptions into opportunity.
Insights View all
Franklin Templeton Fixed Income Fixed Income
Municipal bond market monthly brief
July 6, 2026
Municipal bonds finished the first half of 2026 with strong momentum, outperforming many other areas of the bond market despite record levels of new issuance. In this month's update, the Franklin Templeton Fixed Income team looks at what's driving demand, why municipal bond fundamentals remain resilient, and what investors should watch as we head into the second half of the year.
Franklin Templeton Fixed Income Fixed Income
The "Silver Tsunami" is changing municipal credit—here’s how
June 4, 2026
As the population ages, municipal credit is evolving. Jennifer Johnston, Director of Municipal Bond Research at Franklin Templeton Fixed Income, breaks down what the “Silver Tsunami” means for key healthcare sectors and investors in the final part of this two-part muni credit research series.
Resources
Our comprehensive municipal bond literature is designed to support informed investor discussions, offering insights into market trends, investment strategies, and the benefits of tax-free income solutions.
3 reasons to invest in munis today
Find out why municipal bonds are a clear choice.
Western Asset municipal strategies
Discover the possibilities with Western Asset Management.
Leaders in Municipal bond Investing brochure
Explore the most comprehensive suite of municipal bond strategies — built for every investor, every vehicle, every need
Franklin Templeton Fixed Income
Explore the benefits of investing with Franklin Templeton Fixed Income.
Take the next step
Let us help you determine the right municipal bond solution for your needs.
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FAQs
How do municipal bonds fit into a broader fixed income or multi-asset portfolio?
What is the difference between general obligation bonds and revenue bonds?
What role does active management play in the municipal bond market?
How should investors think about credit quality and credit risk in the muni market?
Risks
All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price which they have been valued. Active management does not ensure gains or protect against market declines. Portfolios focused on a single state are subject to greater risk of adverse economic and regulatory changes than a geographically diversified portfolio.
These portfolios may be non-diversified and may invest in a relatively small number of issuers, which may negatively impact the strategy’s performance and result in greater fluctuation in the value of the strategy’s shares. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. An investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply.
Putnam funds are not exchangeable for other funds distributed by Franklin Distributors, LLC.
Franklin Distributors, LLC. Member FINRA/SIPC.
Important information
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.
Your clients should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a prospectus, which contains this and other information. Your clients should read the prospectus carefully before they invest or send money.
Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by affiliated subadvisors of Franklin Templeton. Management is implemented by FTPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee.
ETFs and ETPs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs/ETPs net asset value. Brokerage commissions and ETF expenses will reduce returns. ETF shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.
Footnotes
- Source: Morningstar. As of March 31, 2026.
Franklin Templeton had 32 municipal strategies receive a 4 or 5 star rating out of 68 rated funds. This was more funds than any other investment manager (out of 146) in the Morningstar US Municipal Fixed Income category.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics.
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
- State-specific mandates include Arizona, California, Colorado, Connecticut, Florida, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Minnesota, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Utah and Virginia. State-preference mandates include Alabama, Georgia, Hawaii, Indiana, Kentucky and South Carolina. Certain state-specific portfolios may not be available in all programs. Additional state-specific portfolios may be available upon request and are subject to review. Strategy availability may vary by firm. For those strategies available at your firm, please contact your home office for details.