The five biggest money managers oversee more than half of all assets in high-yield muni funds, raising concerns about concentration and influence
By Heather Gillers and Gunjan Banerji July 24, 2019 5:30 am ET A few behemoths are increasingly dominating the municipal market, helping to lower prices for many investors but also sparking worries about concentration and influence.
Individual investors can benefit from the concentration. By buying a share of a fund, rather than owning a single municipal bond outright, they increase diversification and can reduce their losses in case of a default. And as asset managers scale up, they pass down the benefits to investors in the form of lower fees, they say.
Much of the new money is flowing to the five biggest money managers, which oversee more than half of all assets in funds classified as high yield by Morningstar. Part of this is a result of consolidation. Invesco bought OppenheimerFunds in May, combining two of the biggest money managers that buy junk munis.Large money managers tend to buy more bonds and therefore develop closer relationships with underwriters selling bonds on behalf of state and local governments.
Filings in that case include transcripts of calls between Nuveen executives and municipal-bond departments at Deutsche Bank AG , Morgan Stanley and Goldman Sachs Group Inc. in which Nuveen threatens to cut off business relationships unless the banks boycott Preston Hollow.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
VCs say these 7 space tech firms are set to crush the market in the $350 billion race for spaceThe market for space-related enterprises could be worth as much as $1 trillion by 2040, according to Morgan Stanley.
Baca lebih lajut »
Mueller, a man of few words, may disappoint Trump impeachment advocates
Baca lebih lajut »
U.S. bond vigilantes morph into deficit patsiesTreasury prices didn’t budge after lawmakers struck a spending deal, even though it promises years of trillion-dollar deficits. Investors used to target congressional profligacy. But a world awash in money has co-opted them. Now they won’t enforce discipline until it’s too late.
Baca lebih lajut »
Brad Pitt and Leonardo DiCaprio Are Bonding Through Their Love of SculptureBrad Pitt and Leonardo DiCaprio Are Reportedly Bonding Through Their Love of Sculpture
Baca lebih lajut »
Brad Pitt and Leonardo DiCaprio Are Bonding Over Pottery“Leo brings sandwiches over from their favorite place, Fat Sal’s, and they spend their boys’ nights creating art until the early hours”
Baca lebih lajut »
James Bond and The Fly actor David Hedison dies at 92Actor David Hedison, best known for starring in Live and Let Die, Voyage to the Bottom of the Sea and License to Kill has died
Baca lebih lajut »