Q2 in Review – A Tale of the Bipolar Bond Market

bonds

Dictionary.com defines “bipolar” as “characterized by opposite extremes.” In searching for a word to describe the bond market’s behavior during the second quarter of 2013, bipolar seems rather appropriate. In terms of yields, the 30-year U.S. … [Read more...]

What Bond Fund Flows Tell us About Municipal Bonds

municipal bond fund flows

I was researching bond mutual fund flows earlier this week, and I came across a nice time series from the Investment Company Institute.  It breaks out monthly municipal bond fund flows going back to 2007. What is mutual fund flow data? Flow data … [Read more...]

How to Choose a Municipal Bond for Income

how to choose a municipal bond

Many investors prefer individual municipal bonds over municipal bond funds.  What attracts them to individual municipal bonds is the income stability and lack of interest rate risk when individual bonds are bought and held to maturity.  (You can … [Read more...]

How to Gauge the Interest Rate Sensitivity of Bonds and Bond Funds

interest rates

By Matt Tucker, CFA iSharesBlog.com Today I want to take a step back from the markets and talk about one of the fundamental concepts in fixed income investing: interest rate sensitivity.  Namely, what happens to the price of a bond or bond fund … [Read more...]

Electronic Muni Bond Trading: Better than 2 Cans on a String

electronic municipal bond trading

In order to research an upcoming piece on which broker has the best bond research, I opened small accounts at the 4 largest electronic brokers, each with $1000.  Because the process is easier for personal accounts than it is for company accounts, I … [Read more...]