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Article: High-Yield Debt Captured Funds'Minds and Money in 1st Quarter.
- Article from:
- The Bond Buyer
- Article date:
- April 20, 2001
- Author:
CopyrightCOPYRIGHT 2001 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The fourth quarter's rally in high-grade municipals didn't just peter out. For general municipal bond funds, the average 1.93% they returned for the first quarter of 2001 amounted to a thud after the sparkling 4.25% average return the funds produced in the fourth quarter, according to data from Lipper Inc.
Ravaged by outflows for nearly a year and a half and unable to afford the liquidity risk, funds had been neglecting high-yield bonds for a long time, which culminated in a large sell-off of the riskier securities amid economic fears towards the end of 2000. But as investors fleeing equities began trickling -- and then pouring -- back into municipal bond funds ...