Muni Funds’ Inflows Face 2022 Headwinds With Fed Shifting Course
- More than $96.8 billion went into muni funds and ETFs in 2021
- ‘Significantly lower’ muni inflows likely in 2022: Parametric
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Municipal investors, who poured a record amount of cash into the $4 trillion market for state and local debt last year, aren’t expected to push inflows to new heights in 2022.
Muni mutual funds and exchange-traded funds took in about $96.8 billion in 2021 through Dec. 29, the highest on record for the period, according to Refinitiv Lipper U.S. Fund Flows preliminary data. Investors seeking higher yield amid historically low interest rates were lured in by issuers’ improving credit quality from a rebounding economy and billions in federal aid.