Bonddesk, an alternative trading system, has published an excellent report on what types of muni bonds retail is trading.
Contrary to common wisdom revenue bonds, those NOT backed by taxing authority, were the clear winners as they captured 63% of retail trades.
Average yields in April are shown for bonds maturing in 10 years. (See the report for more yield data.) General obligations bonds Revenue bonds AAA 3.2% 3.4% AA 3.5% 3.8% A 4.1% 4.5% BBB 5.2% 5.2% High yield 7.2% 6.5% % of retail trades 29% 63%
[O]ver the past decade, private developers have figured out how to jump on the [muni] bondwagon.