Muni market endures first real liquidity test post-Citi exit

By Caitlin Devitt and Jessica Lerner

Excerpt from the article:

(April 16, 2025) John Mousseau, vice chairman and chief investment officer at Cumberland Advisors, was among the market participants in late 2023 predicting that Citi's exit would be felt most acutely during liquidity crunches.

"And boy, that's exactly what happened," Mousseau said.

"Citi was hugely capitalized on a relative basis and would have had some leadership role in times of stress, and this was one of those times," he said. "They would have stepped in and used their balance sheet and buy some bonds and steady the market."

Citi's leadership in buying bonds would also have sparked other broker-dealers to follow, Mousseau said. "And when other dealers see someone like Citi, who's a good leader, they themselves will step up to the plate," he said. "It's a question of who's the first person going into the ocean."

Click here to read the full article on the The Bond Buyer website. 

John R. Mousseau, CFA
Vice Chairman | Chief Investment Officer
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