Archive for January, 2011

January 2011

January 31, 2011  |   Monthly Commentary   |     |   0 Comment

Fixed Income Market Recap and Performance Summary Following the sharp selloff in Treasury bond prices witnessed in November and December, price action in January was relatively sanguine. Looking beyond headline performance, the most notable price action for the month was the (3.5%) loss in 30-year Treasury bonds, and the 2.10% gain in the Merrill Lynch High Yield Master II index. Those returns, paired with 2.25% gain on the S&P 500 for the month reflect the widening ...

Opportunity in Municipal Bonds

January 16, 2011  |   Monthly Commentary   |     |   0 Comment

Investors continued their exit from municipal bond funds throughout December and the first two weeks of January. Concurrent with heightened credit fears in the Municipal market, higher long term US Treasury rates, and an expected supply shift from long term taxable municipal bond issuance to long term tax exempt issuance led to indiscriminate selling among traditional tax exempt investors. Mutual fund outflows averaged more than $2.0 billion per week from the middle of November to ...