Hedge funds realize gains from tobacco bonds snapped up cheaply after muni-bond funds dumped...

|By:, SA News Editor

Hedge funds realize gains from tobacco bonds snapped up cheaply after muni-bond funds dumped holdings en masse, due to a ratings downgrade on the industry. The exodus started last fall, but a tentative settlement between states and tobacco companies, and a prospective $5B flowing to bondholders, has lifted prices recently.