Muni Investors ‘Keep Their Heads’ After S&P Cuts Ratings
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Individual municipal-bond investors aren’t fleeing the market after Standard & Poor’s lowered the credit rating of thousands of bonds.
The ratio of buy orders to sell orders, a measure of investor demand, was 2.5 for municipal-bond trades on the BondDesk Group LLC platform yesterday, meaning there were more buyers than sellers, said Chris Shayne, senior market strategist for the group, a bond marketplace that works with dealers, advisers and discount brokers. That ratio showed demand was about normal and up from earlier in the week when demand was “substantially” weaker than normal, said Shayne, who’s based in Mill Valley, California.