What shifting muni bond ownership says about the next phase of the muni market

Individual retail investors (including their separately managed accounts), and their mutual fund proxies hold about 70% of outstanding municipal bonds according to MSRB data (MSRB-Muni-Facts.pdf).  ETFs, representing 4% of the market, comprise the fastest growing segment. Banks (including credit unions), held about 9% of outstanding municipal securities through Q3 2025, a 19% decline since 2022. Although insurance companies hold 9% of outstanding municipal bonds, their portfolio allocations to the asset class have been declining.
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