NEW YORK: The riskiest part of the US$4 trillion (RM16.63 trillion) municipal bond market may see demand fade, as the largest fund devoted to buying that debt closes its doors to new investors, according to Citigroup Inc strategists.
Nuveen’s plan to limit new money in its high-yield muni fund signals to investors that the market for riskier tax-free bonds may be overheating, strategists led by Vikram Rai wrote this week, in a report that doesn’t mention the asset manager by name.
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