State Street Global Advisors (SSgA [profile]) temporarily stopped cash redemptions of municipal bond ETFs after panic selling broke out Thursday, the WSJ reported. Individual investors selling in the open market aren't affected but dealers have been put out by the halt.

The market was caught in a gridlock after selling shares became a difficult and expensive endeavor. The decision to only allow in-kind redemptions enabled ETF traders to sell shares with more ease. Among some of the securities affected by the halt in cash redemptions are: SPDR Nuveen Barclays Short Term Municipal Bond, SPDR Nuveen S&P High Yield Municipal Bond and SPDR Nuveen Barclays California Municipal Bond.

To read more, click here. 

Edited by: Casey Quinlan


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