The Municipal Market Calm Before the Storm

*Article initially published in The Bond Buyer

The municipal market was in a state of disarray in March due to a “rush to safety” but has recovered sharply over the past few months. Money has flowed back to municipal bond funds, rates have decreased to historic lows, and bond issuance has risen.

It has been a quick and remarkable turnaround, at least in part due to various actions taken by the Federal Reserve Board. After only about four weeks of dislocation, many observers are already beginning to put March in the rear window. But should we assume this quick turnaround will persist?

Read the full analysis in The Bond Buyer.