Detroits bankruptcy filing means its time for advisors to reassess their holdings, says Warren Pierson, lead manager of Bairds intermediate-term municipal bond fund, but not to over-react to what is sure to be a panicked client base.
That includes individual municipal bonds as well as funds, says Pierson, who wasnt surprised by the Detroit bankruptcy filing and doesnt think itll be sorted out any time soon. Investors have been desperate for yield in recent years. Within fixed income, theyve gone longer in maturity and lower in quality. Often, that has meant turning a blind eye to risk.
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