Municipal Bond Market - An End to Record Mutual Fund Inflows
The municipal bond market performed well during the first two months of the year, with the Bloomberg Barclays Municipal Bond Index returning 3.11% through the end of February. The municipal market, however, has not been immune to the turmoil that the COVID-19 virus has created. March was a very volatile month, with large swings in municipal pricing. Despite these undercurrents, the market was able to outperform other segments of the fixed income market with the Index return down only 0.63% for the quarter. In a reversal of trend, lower quality had the worst performance in the current environment after having the best performance for more than five years.
The Bloomberg Barclays Municipal Bond Index is a market capitalization-weighted index that measures the long-term tax-exempt bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.
Past performance is not indicative of future results.