Mon, 26 Aug 2013
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Investors appeared to be trading interest - rate risk for equity and credit risk in the wake of this summer's rate-driven bond volatility.
Munis have faced both interest rate and credit risk pressures, but at current levels, this varied asset class is worth considering, especially for those in higher tax brackets, say Morningstar's Candice Lee and Eric Jacobson.
Passive equity funds, noncore bonds , alternatives, and many of the fund shops that sell them fared well last year, while core bonds , commodities, and gold suffered.
Income-hungry investors sought out niche fixed-income funds like bank-loans and non-traditional bonds in the first quarter, while the so-called great rotation into stocks is not yet confirmed.
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