The Municipal Securities Rulemaking Board has just published a new report on trading patterns in the primary and secondary markets for municipal bonds, which reveals notable differences in the buying behavior of individual and institutional investors in each of these markets. The authors found that individual investors generally buy bonds in the secondary market and have limited participation in the primary market, whereas institutional investors dominate the primary market. They concluded that while individual investors may have valid reasons not to access the primary market, they would likely benefit from more balanced participation between the primary and secondary markets.
Read the press release.
Read the report.
