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US Banks Cut Back Muni Exposure to Lowest Since Financial Crisis

US Banks Cut Back Muni Exposure to Lowest Since Financial Crisis

Bloomberg11 hours ago
US banks are holding the smallest share of debt sold by states and localities since the financial crisis despite attractive valuations and a heavy flow of new bond sales.
In total, banks hold nearly $295 billion of securities and around $190 billion in direct loans from municipalities, according to an analysis by Municipal Market Analytics of second quarter Federal Deposit Insurance Corporation data. That means municipal securities make up about 1.18% of total bank assets, the lowest since the financial crisis.
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