Tuesday, 2 July 2013

Record $4.53B Exits Muni Bond Funds

By James Ramage

The dam broke for investors in municipal bond mutual funds.

The muni market, reeling from one of the worst selloffs in 25 years in the past week, witnessed record-breaking outflows from muni bond funds. Weekly reporting funds recorded outflows of $4.53 billion for the week of June 26, Lipper FMI numbers showed.

They represent the largest weekly outflows for munis since Lipper started tracking them in 1992. The market reached its previous record, at $4 billion, on the week of Jan. 19, 2011, during the selloff triggered when banking analyst Meredith Whitney predicted a wave of defaults.

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