For the Muni-Bond Market, It’s the Worst Week Since 1987

  • State and local government debt is headed toward a 4.2% loss
  • It wiped out $66 billion in an index’s market capitalization

Photographer: Daniel Acker/Bloomberg

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Municipal-bond bankers, traders and investors are closing out their worst week since 1987.

State and local government debt is headed toward a 4.2% loss, the biggest weekly drop since at least May 1987, according to data compiled by Bloomberg. That wiped $66 billion from the Bloomberg Barclays municipal-bond index’s market capitalization.