(Bloomberg) -- The worst rout in the $3.7 trillion municipal-bond market in more than two years is proving a gift for wealthyinvestors buying through brokers and professional asset managers who see a chance to make long-term money.

With state and local debt at its cheapest since April 2011, such buyers are grabbing munis with yields at record highs, according to data compiled by Bloomberg. For example, Ace Ltd., a Zurich-based property and casualty insurer, increased its muni holdings by 15 percent in the first six months of this year.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access