Tags: muni | buying | opportunity | bankruptcy

Experts: Munis' Drop Makes Them Attractive

By    |   Tuesday, 17 December 2013 07:01 AM

The price decline of municipal bonds in recent months has offered a buying opportunity for the discerning investor, experts say.

"Although some municipalities remain fiscally challenged, this is the wrong time to panic," Jeffery Timlin, lead municipal portfolio manager at Sage Advisory, tells The Wall Street Journal.

Munis have been battered this year by Detroit's bankruptcy filing in July, concern that Puerto Rico will have difficulty paying back its $70 billion of muni bonds and by anticipation that the Federal Reserve will taper its quantitative easing soon.

Editor’s Note:
Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

Muni-bond mutual funds and exchange-traded funds (ETFs) have seen a record outflow of $55 billion so far this year, easily topping the 1994 record outflow of $15 billion, according to Lipper data cited by The Journal.

Muni funds have slipped an average of 2 percent so far this year, according to Morningstar, The Journal reports.

But fund managers say fiscal reforms may improve matters in the most beleaguered cities and states, the paper reports.

Overall, "municipal bankruptcies have actually been trending down over the last three years," James Spiotto, a bankruptcy lawyer at Chapman and Cutler in Chicago, tells The Journal.

The positive trend is widespread, experts says.

"Municipal finances are improving," Issac Kuo, a municipal bond portfolio manager at Eaton Vance, which manages $25 billion of munis, tells InstitutionalInvestor.com.

"You have one-offs like Detroit and Puerto Rico. But across the majority of the municipal space, we think things are improving. Revenues are higher, balance sheets are getting better, and the economy seems to be getting better."

Editor’s Note: Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

Related Stories:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
The price decline of municipal bonds in recent months has offered a buying opportunity for the discerning investor, experts say.
muni,buying,opportunity,bankruptcy
305
2013-01-17
Tuesday, 17 December 2013 07:01 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved