The recent lack of movement in Treasury yields has caused municipal bond fund prices to stagnate.
Municipal bond funds may be feeling some effect from negative headlines coming from Puerto Rico's financial problems, but the market's still pretty cheap, Metzold says.
Municipal bond funds may slightly be feeling the effects of negative headlines coming from Puerto Rico’s financial problems.
David Dowden likes what he sees despite the troubles in Chicago and Puerto Rico.
Beyond the headlines about credit troubles in Puerto Rico and Chicago, there is a lot to like about the municipal bond market.
Dan Veru, chief investment officer at Palisade Capital, says that second quarter earnings from JPMorgan Chase, Citigroup and Bank of America show underlying strength in the sector.
Puerto Rico’s problems are not systemic and will likely remain contained inside Puerto Rico unless retail investors overreact.
Most fund managers agree that economically strapped Puerto Rico won’t drag down the entire municipal bond market. Neither will Chicago, says portfolio manager Dawn Daggy-Mangerson.
Puerto Rican bonds show up in more than half of mutual funds, with concentrations in those run by Oppenheimer and Franklin Templeton.
Stocks edged up slightly in midday trading Tuesday over hopes that an 11th hour debt deal may save Greece from default.