Takeaways by Bloomberg AI
- Owners of municipal bonds are selling their weakened securities to help whittle down their tax bills, then using muni exchange-traded funds to get back into the market.
- Investors pushed an unprecedented amount into muni ETFs for the week ending Oct. 14, while open-ended muni mutual funds lost a large amount.
- Municipal bond investors can utilize tax-loss harvesting to potentially eliminate tax liabilities because the income is exempt from federal income taxes.
Bloomberg Markets
By Elizabeth Rembert and Amanda Albright
October 21, 2026