May 27, 2019
Risky municipal bonds are on a hot streak
Funds dealing in high-yield munis have drawn $8 billion as investors search further afield for returns
Written by Gunjan Banerji for the Wall Street Journal
Investors seeking yield are piling into the riskiest corner of the municipal bond market at a pace not seen in decades.
They have poured $8 billion into funds that deal in high-yield muni bonds—or junk munis—this year, the most through May since at least 1992, according to Refinitiv data. Muni-bond funds overall have attracted $37 billion during that same period, the most in almost three decades.