By Mark Paris, Chief Investment Officer, Head of Municipal Strategies, Invesco Fixed Income
The world was a different place only a few weeks ago. Municipal bond funds had experienced 60 straight weeks of inflows - a record streak totaling around $75 billion.1 But fast forward to the week ending March 18, 2020, and fears of COVID-19 caused municipal funds to experience $12 billion in outflows, another record.2 Outflows began mostly in high yield funds, forcing fund managers to sell bonds to meet redemptions. Because most high yield municipal funds hold 30%-60% of their