Muni Trading Drops to Lowest Since 2006, Showing Industry Shift

  • Number of municipal transactions sank 14% in a year’s time
  • Small-sized trades fell while institutional activity increased
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Mom and pop look like they’re starting to leave municipal-bond trading to the professionals.

Last year saw trading sink by 14% to the lowest level since 2006, or 8.75 million transactions, according to a Municipal Securities Rulemaking Board report on Tuesday. The drop was driven by fewer trades of $100,000 or less, signaling less activity by retail investors, the report found.