NMCO - The Muni Meltdown Timeline (And The Opportunity It Presents)
By John R. Mousseau, CFA
The municipal bond market has suffered one of the most dramatic back-offs it has ever seen; and it was accomplished in about nine business days. The rise in yields has been dramatic and fierce and had lots of elements to it. This is a quick synopsis of some of the muni meltdown.
As of Monday, March 9th, closing AAA yields for the muni market from Friday, March 6th, were as follows.
Here is the closing from March 19th. Clearly, the muni/treasury ratios became grossly distorted, particularly on the short end,