Small Investors Ruled the Municipal-Bond World for a Few Days in March

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Small Investors Ruled the Municipal-Bond World for a Few Days in March
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Small investors typically don’t have much of a shot at the freshest municipal bonds, but they got their chance in mid-March

A rough stretch in the municipal-bond market in March turned out to be a golden opportunity for some household bondholders. Small-time investors are seeing huge price gains on bonds they scooped up that month, as mutual funds were hemorrhaging cash and cities were canceling plans to borrow.

Smaller bond purchases, of $100,000 or less, reached their highest volume in 10 years on March 24, a combined one-day total of $795 million, according to the Municipal Securities Rulemaking Board. About $2.75 billion was purchased in quantities...

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