I was researching bond mutual fund flows earlier this week, and I came across a nice time series from the Investment Company Institute. It breaks out monthly municipal bond fund flows going back to 2007.
To see a list of high yielding CDs go here.
We will be adding the below chart to the bond market data section here at Learn Bonds, however there is one thing that I also wanted to comment on here as well. It is widely known that Meredith Whitney scared many municipal bond investors out of the market with her 2010 prediction of $100’s of Billions of dollars in municipal bond defaults that never came true. When looking at municipal bond flows on the below graph however, its still striking to me just how much of an effect she had. The fact is that one person had more of an effect on municipal bond fund outflows than the entire 2008 financial crisis.
Another thing I think is interesting, is the lack of jitters so to speak that the market has shown since the blown Whitney call. Earlier this year both Warren Buffett and the NY Fed came out with news that while not as dire as the Whitney prediction could have certainly spooked the market. By the looks of this graph at least, it seems that municipal bond investors are once bitten twice shy.
The Professional Edge in Municipal Bond Trading
Interview: How Portfolio Manager Robert Amodeo Finds Value in Municipal Bonds
Scott Cottier Interview: 3 Places to Find Value in Municipal Bonds
How to Buy Municipal Bonds – Retail Order Period