For 31 consecutive weeks investors put cash into municipal bond mutual funds but saw just $36.87 million of inflows in the latest reporting period while high-yield funds saw $460 million of outflows after $103 million of outflows a week prior.
Moody's moved its outlook to positive on Minnesota's Aa1 rating, and S&P went to stable from negative on its AAA rating ahead of the state's annual bond sale.
Supply clocks in at $5.987 billion for the holiday-shortened week. Municipal new-issue volume is still lagging demand with Bond Buyer 30-day visible supply at $10.30 billion, while Bloomberg shows net negative supply at $11.430 billion.
Moody's (MCO) assigned its Baa1 rating to the California Institute of the Arts, which traces its lineage to Walt Disney (DIS), ahead of the university's $33 million debut in the public debt markets.
The Oversight Board reached the deal with Ambac Assurance and Financial Guaranty Insurance Company on PRIFA rum tax bonds. The two insurers had been important holdouts from the central government debt deal.
S&P said the rating on the senior living revenue bonds Capital Trust Agency issued for borrower H-Bay Ministries Inc. of Texas will now be withdrawn in 30 days.
The mutual fund company targets more yield and duration opportunities with its Municipal Intermediate Fund, which will invest primarily in investment-grade bonds across municipal sectors.
The Investment Company Institute reported another week of inflows, but at a lower clip than recent weeks with $541 million coming into municipal bond mutual funds.
The Investment Company Institute reported another week of inflows, but at a lower clip than recent weeks with $541 million coming into municipal bond mutual funds.
While the pressure was on municipal yields, which rose two to four basis points, the Investment Company Institute reported another week of inflows, with $928 million coming into municipal bond mutual funds and another $285 million into ETFs.
In her role as senior vice president of credit for municipal and corporate bonds, Urtz is overseeing a redesign of FHN's primary website for fixed-income transactions.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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