The horror. The horror.
's Kelly Nolan assessed the damage done to the municipal bond fund market in June, and it is bleak. Investors pulled out $13.5 billion from mutual funds investing in municipal bonds. To look at the bigger picture, June's outflow is 2.2 percent of the $680.7 billion managed by municipal bond funds and the second largest monthly outflow of cash from that market on record, according to Lipper data, Nolan wrote.
Barclays municipal bond index had a negative return of 2.83 percent in June, the biggest loss since the fall of 2008, when the index had a negative total return as high as 4.69 percent. Vanguard[profile]
has $100.6 billion in municipal bond assets and lost $2.3 billion, Nolan reported. OppenheimerFunds[profile]
Management & Research Co. and Nuveen[profile]
Fund Advisors lost more than $1 billion in their municipal bond funds.
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