Traders of tax-exempt municipals had a sluggish start to the week Monday as investors weary from Detroit’s historic bankruptcy tiptoed around small issue volume.
“All the way around the market has a bad tone to it,” one trader in Dallas said. “The dealers are still reeling from the hits they took last week, and they’re reluctant to underwrite deals. With Detroit’s bankruptcy and the downgrade of Chicago to A3, it was kind of a double whammy. It was just a slow day.”