With Low Yields, Insured Funds Suffer From Lack of Demand

Fine, Jacob
May 2006
Bond Buyer;5/24/2006, Vol. 356 Issue 32389, p7
Trade Publication
This article reports that insured funds or mutual funds in the United States have suffered lack of demand due to low yield. According to Lipper Inc., insured bond funds have barely been eking out positive results so far in 2006, as they have produced an average total return of just 0.04 percent for the year to date through May 18, 2006. The slackened demand for insured product has hurt the performance of the funds that only invest in insured bonds. Gary Swayze, a portfolio manager at Columbia Management Group in Boston said that since insured bonds have lower income to start with, if their prices are down more year-to-date then their total return is going to be lower.


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