Muni Defaults Surge (in some states), but Yields Don’t Follow
Even with coronavirus losses weighing heavily on state and city coffers, investors are piling back into municipal debt, hungry for yield and seeking more safety than the stock market can provide. Investors have put about $28 billion back into muni mutual funds since the end of April, according to Refinitiv Lipper, nearly 60% of the amount pulled during the height of the pandemic. Inflows have continued even as defaults rise. Universities, convention centers, student housing and senior living facilities are confronting significant disruptions to revenue, sending some into insolvency. As of July 31, there were a total of 50 municipal defaults, [...]