NMCO - The Great Municipal Bond ETF Freeze Out
Originally published March 26, 2020
I want to begin by saying that, despite the disquieting events of the past three weeks, the structure of municipal bond ETFs, which have proven to be both efficient and effective in the delivery of tax-free income, remains intact. Up to this point, neither process nor credit quality is, at least for now, inhibiting the free flow of normalized activity that underpins this market. It is, rather, a temporary "freeze-out" experienced by banks and traders, unable to source more capital to provide the liquidity to meet the massive flows in