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. Read more: Bond Buyer