August Rally Signaled by Record Cash Wave Spillover: Muni Credit
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The $3.7 trillion municipal market is wrapping up its best month since January. If the past decade is any indication, August may be even better.
Munis have earned 1.5 percent on average in August since 2001, the most for any month, Bank of America Merrill Lynch indexes show. Local debt has gained about 1.8 percent this month through July 26. Helping propel the gains, about $142 billion flowed to bondholders from redemptions and refinancing since May, the most ever for a three-month period, according to Citigroup Inc.