$3.4 BILLION
That’s the amount investors withdrew from municipal bond funds in the week ended Aug. 31, closing out another rough month for bonds in general and munis in particular. Of the 10 weeks with the highest muni bond outflows since 1992, five occurred this year.
Rising rates remain a key culprit, but credit concerns are popping up as well. Some analysts believe public transportation ridership will never rebound to pre-pandemic levels, weakening transit bonds in cities like New York and San Francisco. Barclays Credit Research recommended earlier this month that defensive investors seek out insured munis.
The Wall Street Journal
By Heather Gillers
Sep 1, 2022