Muni Fund Investors Squeezed as Flattening Curve Reduces Payouts

  • UBS can’t recall time in “recent memory” with so many cuts
  • Higher borrowing costs, lower reinvestment rates hurt payout

Investors who’ve come to depend on steady income checks from leveraged municipal-bond funds are starting to feel the pinch from the narrowing in the difference between short- and long-term borrowing rates.

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