Municipal Market Update: The Cost of Waiting
Overview
We believe the reason many bond investors are maintaining high balances in low-yielding money markets right now is because they've been scared into thinking the value of their investment will decline sharply if interest rates rise. They may well be right. They may be wrong. We do not know with certainty. However, we do know with certainty that approach has been dead wrong over the last 12-18 months and it may continue to be the wrong strategy for another 12-18 months.