Financial Times FT.com

Muni bonds regain retail appeal

By Nicole Bullock in New York and Matthew Garrahan in Los Angeles

Published: October 19 2008 22:33 | Last updated: October 19 2008 22:33

With Wall Street on its knees, a corner of the credit markets has returned to its roots, to the delight of retail investors.

During the credit boom the retail investors that used to dominate the municipal bond market were squeezed out by institutional investors, who used leverage to boost returns. However, lured by attractive yields, individual buyers have returned to the muni market.

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