Munis Set to Reap Cash as Fed Cuts Rates, AllianceBernstein Says
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The Fed:Construction workers in San Francisco.Municipal bonds are likely to lure money as Federal Reserve interest-rate cuts lead investors to look for new places to park their cash, says Matthew Norton at AllianceBernstein, and he pointed to debt sold for affordable-housing projects as an appealing sector. The Fed last week lowered rates for a third straight time, and traders expect more cuts in 2026, further reducing returns on the $8 trillion sitting in US money-market funds. Norton expects that munis, and in particular higher-yielding munis, will draw some of that cash.