Muni Fund Managers Stand Pat: Plan Ahead for A Rise in Rates

The Bond Buyer reports:

Buoyed by the strength of the long-term municipal market over the past 18 months, mutual fund assets have climbed to record levels, and portfolio managers have had little need to make major changes to their current investment strategies.

“At this point, we see little risk of rising rates given the sovereign conditions globally,” said Gary Madich, chief investment officer for fixed income at JPMorgan Asset Management in Columbus, Ohio.

“We see the [Federal ­Reserve] on hold until late this year or early next year due to low inflation, improving — but weak — employment conditions, and weak housing markets,” he said.