Saturday, October 26, 2013

Investors Flee Puerto Rico Funds


Investors Flee Puerto Rico Funds:
THE BOND BUYER
OCT 25, 2013 
“Some are arguing that investors would start to see the losses in Puerto Rico and start selling all municipal bond holdings for cash, as opposed to switching into another fund, and that starts to put pressure on munis in general,” said Tom Graff, head of fixed income at Brown Advisory.
Investors have been pulling money from muni bond funds for 22 consecutive weeks, withdrawing $746 million in the most recent week after $1.31 billion in redemptions the previous week. Outflows have been widespread, with money being pulled from long-term funds, high-yield funds, intermediate funds, national funds, and muni market funds."