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Foreign banks, funds turn to US municipal bonds

They are facing negative interest rates in their home countries

Published Tue, May 17, 2016 · 09:50 PM

New York

IN 1989, Japanese investors bought Rockefeller Center. Now, they are plowing into the market that finances the subways underneath.

Faced with negative interest rates in their own countries, foreign banks and pension funds are looking increasingly towards municipal bonds, a bastion of buy-and-hold investors seeking US income tax breaks.

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