Investors are snapping up muni funds at fastest pace in 5 years. Why the good times may last

Volatility hasn't dampened demand for municipal bonds. The assets performed dismally in March but rebounded in April. In fact, the ICE BofA US Municipals Securities Index posted its first positive April since 2021 and the strongest one since 2014. Munis are free of federal tax and, if the holder lives in the state in which the bond is issued, also exempt from state tax. Maybe as a result, investors have piled into muni bond funds at the fastest rate since 2021. …