Muni bond funds poised for 20% gains

Further gains may be in store should the central bank pivot to cutting rates next year, as many now expect. — Reuters

NEW YORK: Municipal (muni) bond funds that use borrowing as a way to juice returns had a banner month in November, surging almost 12%. Some market watchers say that’s only just the start.

Leveraged closed-end muni funds rallied along with the broader market as evidence of slowing job growth and cooling inflation convinced traders that the Federal Reserve’s rate-rise cycle is over.