Muni Funds Lose Most Cash in Five Weeks Amid Puerto Rico Default
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Investors yanked the most money in five weeks from municipal-bond mutual funds after Puerto Rico defaulted on debt issued by its Public Finance Corp.
Individuals pulled $308 million from muni funds in the week through Wednesday, Lipper US Fund Flows data show. That’s the largest withdrawal since the period through July 1, during which Puerto Rico Governor Alejandro Garcia Padilla said the U.S. commonwealth can’t afford to pay its debts.