How the Muni Market Became the Epicenter of the Liquidity Crisis

How the Muni Market Became the Epicenter of the Liquidity Crisis

| April 03, 2020
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ClientFirst founder Ed Mahaffy MBA, CFP®, ChFC® speaks with The Wall Street Journal to explain how the current liquidity crisis in municipal bonds has been a long time coming. While the COVID-19 Pandemic may have been the proverbial straw that broke the camels back, changes in how municipal bond investments have been bought and sold have been in the works for years. 

The coronavirus triggered a liquidity crisis in municipal bonds, but the volatility that resulted has been brewing for a decade. Desperate sellers across most markets sold assets at deep discounts last month as the spreading new coronavirus left investors fearful and hungry for cash. Perhaps no investment flipped from coveted haven to spurned hot potato as quickly as municipal bonds.

 

About Edward P. Mahaffy, MBA, CFP®, ChFC®

Ed founded ClientFirst Wealth Management in 2007, after more than 23 years in the wealth management industry. Prior to launching ClientFirst, he spent 6 years as a portfolio manager and branch manager with Raymond James, 6 years as a vice president and portfolio manager with Merrill Lynch, and over 11 years as a financial advisor and fixed-income portfolio manager with Stephens, Inc. 

Designated as a Certified Financial Planner and Chartered Financial Consultant, Ed holds a Bachelor of Science in Business Administration from The Citadel and earned his MBA from the University of Arkansas. He is also a member of the Financial Planning Association (FPA). Ed has had articles published in The Arkansas Banker as well as Barron’s magazine and is a member of the National Association of Personal Financial Advisors (NAPFA). He is also the author of How to Select a Financial Advisor: The Least You Should Know.At ClientFirst, Ed is president and senior portfolio manager. 

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