Retail investors are keeping their powder dry, holding money out of the municipal market as they wait for the Federal Reserve Board to make good on its promise of higher interest rates, municipal managers said.
"There is an expectation and hope for higher rates, but no urgency to put cash to work," said Peter Delahunt, managing director of the municipal bond department at Raymond James & Associates. "The frustration continues to keep cash either on the sidelines or in the short part of the curve, with some throwing in the towel to move out the curve, or down in credit to capture more yield."
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