Fund outflows in the municipal bond asset class, in part driven by the Detroit bankruptcy, pushed municipal bond performance down in July according to the S&P National AMT-Free Municipal Bond Index.
- Particularly hard hit was Puerto Rico. The S&P Municipal Bond Puerto Rico Index was down over 4.1% in July (down 6.61% YTD). State specific municipal bond mutual funds with large percentage of Puerto Rico paper due to triple tax-exemption will have felt the pain.
- Investment grade munis tracked in the S&P National AMT-Free Municipal Bond Index recorded a negative 1.08% return in July (down 3.87% YTD). Shorter municipal bonds tracked in the S&P Short Term National AMT-Free Municipal Bond Index saw positive returns of 0.27% for July helping to hold those bonds in positive territory for the year to date.
- In the high yield sectors of the municipal bond market, tobacco settlement bond were hardest hit hard in July as the S&P Municipal Bond Tobacco Index was down 3.8% for the month and is down 7.12% YTD.
|Other Sectors and Asset classes:|
|S&P Municipal Bond California Index||
|S&P Municipal Bond Illinois Index||
|S&P Municipal Bond Michigan Index||
|S&P Municipal Bond New York Index||
|S&P Municipal Bond Puerto Rico||
|S&P Municipal Bond High Yield||
|Investment Grade Corporate Bonds|
|S&P U.S. Issued Inv Grade Corp Bond Index||
|High Yield Corporate Bonds|
|S&P U.S. Issued High Yield Corp Bond Index||