One part of the economy that has rebounded strong after the effects of Hurricane Sandy is the municipal bond market. Muni bond funds had been strong all year, with net inflows for 28 straight weeks before the storm hit, and 58 out of 62 weeks overall. But the week that ended on October 31, with the markets closed much of that time, saw net outflows from muni bond funds totaling $123 million.
But the following week, ending November 7, saw a complete turnaround: A whopping $866 million flowed into muni bond funds that week. As a category, muni bond funds now hold a total of $318.6 billion in assets.
Corporate bond funds also bounced back strong for the week. Reflecting pent-up investor demand, investment-grade corporate bond funds took in $2.74 billion in new assets for the week - the biggest week for those funds on more than 20 years.
No comments:
Post a Comment