High-income households looking for tax relief drove record inflows into municipal-bond funds in 2019
Investors are heading into this year still eager for municipal bonds after a 2019 buying binge supercharged returns.
High-income households looking for tax relief drove record inflows into muni-bond mutual funds last year, with the S&P Municipal Bond Index up 7.26% during the 12 months ended Dec. 31.
Some analysts project that muni-bond mutual funds will continue that growth in 2020.
“Basically all of that money has driven up prices,” said Nicholos Venditti, a portfolio manager at Thornburg Investment Management.
The Wall Street Journal
By Heather Gillers
Updated Jan. 2, 2020 5:05 pm ET