Brian Chappatta, Columnist

Drama Erupts in the Tiny Corner of High-Yield Munis

A lawsuit involving Nuveen and Preston Hollow shows there’s money for ambitious capital projects.

March 7, 2019 at 10:00 AM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Too much cash is chasing too few bonds.
Photographer: SeongJoon Cho/Bloomberg

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There’s nothing quite like big drama in a relatively small market.

The latest public spat isn’t about manipulation on a global scale, like foreign exchange or the London Interbank Offered Rate. Nor is it about trading stocks on inside information. It centers on the U.S. municipal-bond market, specifically a dispute between investors involved in the small corner devoted to high-yield state and local government debt. Bloomberg News’s Martin Z. Braun has the details: