Muni Catchup 6/9
by PL
Funds are Flowing into Munis
The Fed released the quarterly Flow of Funds Report today, and it shows that in Q1 2016, funds flowed into munis.
- Household ownership +$11.5 billion
- Mutual Fund ownership +$24.7 billion
- ETFs +$1.8 billion
- Non-U.S. ownership +$2.0 billion
A more detailed analysis will be published tonight. If you’re not already signed up, subscribe now to get e-mail announcements sent to your inbox. No spam.
Have a great rest of the day!
Pat
The opinions expressed and the information contained herein are based on sources believed to be reliable, but accuracy or appropriateness is not guaranteed. Past performance is interesting but is not a guarantee of future results. Investments in bonds are subject to gains/losses based on the level of interest rates, market conditions and credit quality of the issuer. Indices are not available for direct investment, although in some cases, there may be ETFs available designed to track some of the indices shown. The author does not provide investment, tax, legal or accounting advice–this is NOT investment advice. Investors should consult with their own advisor and fully understand their own situation when considering changes to their strategy, tactics or individual investments. Additional information available upon request.
Income Investor Perspectives 
The most interesting day for munis coming up will be June 16th when the state of Illinois tries to issue g.o. debt. They haven’t even had a state budget for two years and several portfolio managers are calling for a boycott until the state assumes more fiscal responsibility. Illinois had a hard time last time they came to market with a taxable deal long end yielding close to 8%. The concept of constantly issuing new debt to just kick the can down the road for the next administration has got to stop.
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