July 5 - While rising interest rates have resulted in municipal bond outflows, investors say the outlook for state and local debt will improve in the second half of 2013 and feel bonds are attractively valued.
I think things are returning to normal. Philadelphia just got an upgrade. To a minus. To me that's the leading indicator that things are getting better California pension fund I think is a leading indicator of their showing big returns they've they've surpassed their previous -- investments. And the last quarter they just showed up 14% return that's probably having the pension funds. So I think that's starting to blunt all of the concern over pension underfunding Detroit certainly is a little bit of a stumble here but I still believe overall credit market and municipals. It's still going to remain strong in the false with the exception of the -- -- Detroit. Are probably still going to be lower than last year. They're spread product and anytime you see an increase interest rates that we've seen it yet a ten year treasury mark. We're gonna have spread products also behavior that the -- so we're seeing Muni bond funds actually really take an option little artist. Would negative returns we've seen. Since a November 7 to -- tennis from Meredith -- time so investors are really really Bernie to cover of when it comes to that spread product. We do think that municipal bonds are reasonably attractive in this environment investors need to be aware that Muni bonds tend to be. A longer duration asset if you're looking at most unique indices or Muni bond fund so. We recommend a combination of intermediate communities as well as high yield communities which still offer some value -- -- interest rates us.