Adelino, Manuel; Cheong, Sophia Chiyoung; Choi, Jaewon; … - National Bureau of Economic Research - 2023
This paper identifies the impact of fluctuations in the supply of capital from mutual funds on municipal bond financing … fund flows lead to more municipal bond issuances and raise bond prices, but only when funds, issuers, and underwriters are … bond financing. Third, our results suggest that municipal bond issuers exploit favorable financing conditions to issue …