http://www.bondbuyer.com/news/markets-buy-side/foreign-investors-build-muni-market-clout-1066282-1.htmlYesterday there was a negative article from Bloomberg about a possible spike in muni supply next month. Then later in the evening was this lengthy, but very informative, article about how foreign investors have been piling into our domestic muni market.
All the more reason to simply let price be your guide and ignore the outside noise. Albeit, I will admit you do need fundamentals to underpin the technical moves (whatever the market may be) And as we see in the link above, the dwindling supply of munis in the face of increased demand has been one of the major fundamental drivers.
Nice move today so far in the junk muni ETFs (HYMB and HYD - neither of which I would touch with a ten foot pole) and some of the open end junk munis funds may see YTD highs today.
Comments
I don't see any leverage in these etfs. They are not closed end funds.
http://online.barrons.com/news/articles/SB50001424053111904780504580049990149821472
Robert, the open end are priced end of day at NAV. The ETFs can trade all over the place intraday - premium or discount to NAV - depending on what the hope or fear of the day is. Declines are magnified in the ETFs with everyone rushing to sell. That's what occurred in early July. The most egregious example of why I have such a dislike for ETFs occurred that infamous day in May of 2011.
I have a large position in HYD and the bid/ask is a two edge sword. I have put in low market limit buys in and got some of them filled. Also, after the dividend is paid, I've noticed HYD does decline some. It could be people buying the dividend and then some selling.
I also have NHMAX that I bought when Fidelity waved the front end load of 4.2% - I just can't bring myself to pay a load.
YTD HYD is doing better then HYG
http://finance.yahoo.com/echarts?s=HYD+Interactive#symbol=HYD;range=1y
Not sure if you caught this interview with John Miller from Nuveen:
advisorperspectives.com/videos/Investius-Muni_Issues_featuring_John_Miller.php?WT.rss_f=CommentaRSS&WT.rss_ev=a&WT.rss_a=Muni_Issues_featuring_John_Miller