Munis gain as stocks sell off
In a risky world, we’re seeing a flight to quality that’s benefiting muniland. From the Los Angeles Times Blogs:
Turns out it was a good idea to keep the faith in tax-free municipal bonds last winter when so many investors were bailing out.
It was an even better idea to buy more munis at that point.
While the stock market has dived this week investors have been bidding up the value of many muni bonds, apparently hungry to lock in tax-free yields.
That demand has pushed muni market yields sharply lower, in tandem with the steep decline in yields on U.S. Treasury bonds.
Financial Times: US municipal bonds bounce back
Bond Buyer: Munis and Treasuries Get Crazy
Bookends of muniland fraud
The Bond Buyer has an excellent article on the efforts of five Wisconsin school districts to get their money back after being defrauded by their brokers: