ETF Demand Reshapes Muni Dynamics

Core Insights - Strong demand for municipal exchange-traded funds (ETFs) is altering the dynamics of the state and local bond market [1] - A recent mutual fund conversion created a misleading appearance of nearly $1 billion in outflows, while actual inflows were present, as reported by JPMorgan [1] Group 1 - The shift in demand for municipal ETFs is masking underlying flow trends in the bond market [1] - The conversion of a single mutual fund last week significantly impacted the perception of market flows [1] - JPMorgan's analysis highlights the complexities in interpreting bond market data due to such conversions [1]