Municipal (muni) bonds posted a 3.5% gain in 2015, which was the best performing sector within the investment grade bond market. Part of this strong return can be attributed to fewer bonds being available in the market. 2015 marked the fifth consecutive year where the municipal bond market decreased in size. According to data from Bloomberg, maturing and called bonds outweighed new bond issuance by approximately $15 billion in 2015. A shrinking muni market has pushed bond prices higher.
One of the most popular […]