Cash Floods Municipal-Bond Market – The Wall Street Journal

Investors have poured more money into municipal bond funds so far this year than they have in decades, driving borrowing to fund new bridges, sewers and other state and local projects to a second-straight 10-year high. 

Municipal bond funds now hold an unprecedented 24% of outstanding debt compared with 16% five years ago, according to Federal Reserve data. The move marks the latest step in a fundamental shift away from a buy-and-hold market where individual investors quietly collect interest year after year.