The underlying story of strong demand and modest supply that has characterized the municipal market so far this year continues unabated into the summer, said Alan Schankel, managing director at Janney Montgomery Scott.
“Investors have added $53 billion to muni mutual funds plus almost $5 billion to muni ETFs so far in 2019,” he said. “In theory the $58B total of new 2019 cash is enough to absorb more than a third of the first six months of municipal new issue volume of roughly $166.8 billion.”
He continued to say that this illustrates the shifting trend in how investors seeking tax-free income are participating in the municipal market, with vehicles such as mutual funds and ETFs attracting a gradually growing share of the individual tax free investor pie.
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