Trading at ’05 Low Signals Buy During Sales Drought
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Trading in the $3.7 trillion municipal market has fallen to the lowest level since 2005. For investors, that’s a sign to buy as states and cities throttle back new debt sales to the least in two decades.
Rather than borrow to start projects such as roads and bridges, cities and states are refinancing higher-cost obligations at the fastest clip since the 1990s after yields sank to generational lows, Bank of America Merrill Lynch data show.