One factor exacerbating volatility this year: Wealth managers’ growing share of a $4 trillion market once dominated by individual investors buy and hold .
The share of U.S. households’ outstanding municipal bonds fell to 40% in the first three months of the year from 46% in 2020, according to a City Securities Regulatory Commission report expected. announced on Wednesday. The Board of Directors, a self-regulatory agency that oversees the muni market, analyzed Federal Reserve data and determined that the market is moving from direct bond ownership to investment through funds.
https://www.wsj.com/articles/municipal-bonds-increasingly-held-by-funds-instead-of-individuals-11656408601?mod=rss_markets_main Municipal bonds are increasingly held by funds instead of individuals