Bond Analysis, Assessing Muni Bond Yields Is Essential
Investors who exercise online bond analysis will find that, despite the low muni bond yields, bond funds made up of munis are positively smoking in terms of issuance and sales. As was reported last week, muni bond yields have sunken to previously unforeseen lows, and this week the trend continues further. In fact, all asset classes across the board are now at record low yield levels for various reasons. However, the skinny on munis, some would say, is the lack of supply while demand is high.
Despite this, bond analysis reveals that money continues to flow amorously through muni bond ETFs. Indeed, municipal bonds continued to win the hearts and minds of investors, who ignored some of the reactionary nay-saying that came along with the news of low muni bond yields, and continued to pass on stocks and other asset classes in their favor. As a direct result of this turn of events, municipal bond funds are now virtually the hottest they’ve been all year, with weekly inflows falling just under $1 billion.
Municipal Bond ETFs Continue to Surge in Sales
Current bond analysis shows that muni bond ETFs are surging. Bond funds have always served as a highly viable alternative to investing in a single muni. Why are they so popular right now? The biggest draw for muni ETFs is the fact that this particular type of bond fund is tax free to investors. It appears investors are already preparing for the inevitable deluge that will occur when the Bush tax cuts soon become history. When this happens, federal income taxes are projected to raise, and muni bond funds could very well reach critical mass.
Play It Safe with Bond Analysis
In the meantime, investors have to remain conservative and continue to conduct thorough bond analysis on whatever investment instruments they have their sights set on. Naturally, investors in large numbers are going to be seeking out non-taxable investments during a period of high taxes and low muni bond yields, and muni bonds are going to continue to climb in demand and popularity, but the same principals for investing safely will still continue to apply. Making it a habit to personally look up bond pricing and yields, and bet mostly on bonds backed by essential services, will always ensure bondholders will get the most out of their munis. Fortunately, BondView streamlines the bond analysis process, making it available to all on the web.