NMCO - Municipal Bonds: Volatility Is Creating A Potential Opportunity But Choose Carefully
Until very recently municipal bonds were a very different experience, finishing 2019 with a 14-month run of positive net inflows2, equating $95 billion into open-end mutual funds and exchange traded funds. 2020 is also setting flow records, although from an outflow perspective, with Friday, March 20, marking a one-week outflow record of $12 billion and possibly a month-to-date outflow record, with $27 billion so far.
Source: Morningstar Direct
Why are we experiencing this?
The massive sell-off is driven by the near-term economic uncertainty presented by COVID-19, a pandemic that has driven wide-spread indiscriminate