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Executives at one financial advisory firm said the firm has been flooded with calls from funds asking about strategies that might prop up returns and capital.
Investors pulled more from municipal bond mutual funds in the latest week, with Refinitiv Lipper reporting $2.038 billion of outflows, up from $1.503 billion of outflows in the previous week.
Without a reversal in UST or municipal bond mutual fund outflows, munis will continue to be pressured.
With massive secondary selling pressure and a larger calendar, credit spreads are likely to continue to widen.
Next week's potential volume is slated to be more than $8 billion, led by $1.25 billion of taxable and tax-exempt future tax-secured subordinate bonds from the New York City Transitional Finance Authority.