Accelerating Fund Withdrawals Extend Biggest Losses: Muni Credit
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The largest wave of withdrawals from municipal-bond mutual funds since August is extending the $3.7 trillion market’s worst losses in five years.
As speculation mounts that the Federal Reserve is preparing to reduce its bond purchases, individuals yanked $1.9 billion from muni funds last week, Lipper US Fund Flows data show. Outflows have tallied a record $57.5 billion this year, driving munis to their first annual loss since 2008, according to Standard & Poor’s data.