Citigroup Bucks Herd in Call for ‘Intense, Prolonged Rally’ in Muni Market
- The investment bank says munis may return more than 8% in 2020
- Tax-exempt municipal bonds gained more than 7% last year
This article is for subscribers only.
Citigroup Inc. analysts are standing apart from the Wall Street pack by predicting that the municipal-bond rally may be gaining steam.
Vikram Rai, Jack Muller and Vedanta Goenka, who track the state and local government debt market for the bank, said in a note to clients that the securities may return more than 8% in 2020 as cash continues surging into the market. That would come after tax-exempt bonds gained more than 7% last year, their biggest annual jump in five years.