Municipal bond funds

A day after a big correction, the White House sent mixed signals on Friday setting up a possible flight-to-quality for munis next week.

After seeing a whopping $52 billion of new issuance in October, the new paper will continue to flood the market during the busiest week of the year.

With interest rates likely to fall lower after Fed policy makers meet, already favorable market conditions for municipal issuers will get even better.

The new wave of bond issuance continued unabated as more sales priced on Wednesday.

Although the supply/demand ratio is still lopsided, the recent surge had made things a little more balanced.

The last of the week’s big new issues hit the screens on Thursday.

Supply surged into the municipal market on Wednesday with California and New York issues taking top spot.

Rampant issuance continues with $12.4 billion, heavy on taxable deals. Meanwhile, the end of this volatile week had the secondary getting whacked with AAA benchmarks showing big cuts.

Issuers from New York, Florida and Nebraska offered buyers notes, bonds and taxable deals.

Paul Malloy, head of municipals and credit research at Vanguard, tells why investors should take the long view to achieve relative value in munis as the year ticks on. Chip Barnett and Lynne Funk host.