Why investors should dive into munis this week

Action in the primary muni market has been slow and low in 2018 and yields have spiked recently, with investors increasingly moving to the sidelines to wait for calmer waters. However, some view this as a buying opportunity and are urging others to jump in with them.

2018 has been mean to the muni market. Volume has been slow, and it's estimated to drop even lower to $3.8 billion this week. Yields have been heading north, but that shouldn't sway investors from buying.

There are only 11 deals on this week's schedule of $100 million or larger, with the third and fourth largest of those being taxables, continuing a theme we've seen here early on the year.

Because absolute yields are at levels that will challenge other asset classes, this could be a “buy zone” for those investors who can handle some price volatility.