During the first quarter of 1991, households experienced the second-largest decline in tax-exempt assets in the history of the municipal market, according to the Federal Reserve.

Net reductions in household holdings reached $ 10.3 billion, a 149% increase over the $ 4.12 billion that left direct retail portfolios in the fourth quarter of 1990, according to the Federal Reserve's Flow of Funds Accounts. The largest household asset reduction on record was $ 12.75 billion in the third quarter of 1986, when tax reform was sending shock waves through the market.

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