‘Shocking’ Muni Found Outflows: Time to Buy?
From Focus on Funds
December 21, 2012 - 11:43am
Fears of tax increases are one reason investors are suddenly fleeing muni-bond funds. Actually, fleeing may be a word that lets last week's munis flows off too easily.
The $2.8 billion in net investor outflows was the worst since the late 2010/early 2011 period, when tobacco bonds were downgraded, notes RBC Capital Markets analyst Chris Mauro this morning. "Shocking" is how he described it, following net inflows in 50 of the last 53 weeks.
And yet all isn't lost. That's true even when we're talking recent charts. The iShares S&P National AMT-Free Municipal Bond Fund (MUB), which backed off more than 3% on a price basis from its Nov. 30 high, spent this week recouping from a five-month low on Monday. In a word, stabiilizing. The trend is similar in the iShares S&P California Municipal Bond ETF (CMF), though it's less pronounced in the SPDR Nuveen Barclays New York Munici...Continue reading this article »