The U.S. municipal debt market continues to plunge. That may be a good thing.
Consider the situation of the $3.5 billion iShares S&P National AMT-Free Municipal Bond Fund
that the fund fell to $100.42 Monday, its lowest since April 2011.
While that may translate into some short-term pain for investors now, the newswire argues tax-exempt securities are finally getting cheap enough again to rekindle buying.
Demand may be rebound as investors use case from principal and interest payments, according to Matt Dalton
of Belle Haven Investments
, who is quoted by Bloomberg
as saying that "“Once we get past the Fourth of July holiday, we’ve got a chance of seeing some stability come into this market because of the reinvestment needs."
Read more in Bloomberg
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