FYI: Municipal bonds have never been at risk of becoming the next big thing for bubble-chasing investors, like crypto currencies or tech IPOs.
But 2019 has been marked by an unusually large stampede into the $3.8 trillion state and local government debt market because of a motive that’s nearly as old as civilization itself: avoiding taxes.
Municipal-bond mutual funds and exchange traded funds have pulled in about $46.9 billion over the last 38 straight weeks. That’s the biggest cash haul since 2010 and eclipses the $38.1 billion they picked up during the 54-week stretch that ended in 2016, according to Refinitiv’s Lipper US Fund Flows data.
Regards,
Ted
https://www.fa-mag.com/news/hunt-for-tax-havens-fuels--47-billion-stampede-into-muni-debt-51891.html?print
