James Iselin, head of municipal fixed income at Neuberger Berman Group LLC, also pointed out that seasonal factors are also pressuring munitis. Municipal bonds are typically weak in the spring as investors sell to raise money for tax season.
Nevertheless, many investors have been piling into muni debt. In 2015 through February, Investors added about $7.26 billion to ETFs that track state and local bonds, compared to $1.75 billion in inflows for the same period 2014. [Investors Pile Into Muni Bond ETFs]
iShares National AMT-Free Muni Bond ETF
For more information on the munis market, visit our municipal bonds category.
Max Chen contributed to this article.