December 2016 Municipal Market Returns

Selected S&P Indices:

Tot Return bps/dur
Municipal Bond Index
Intermediate Index
Investment Grade Index
High Yield Index

1.00%
1.04%
1.06%
0.20%

15
18
17
3

S&P Municipal Bond Index components:

Years to Maturity Tot Return bps/dur
0.000-4.999
5.000-9.999
10.000-14.999
15.000-29.999
30.000+

0.23%
0.99%
1.48%
1.43%
1.02%

11
18
20
15
8

 
Ratings Tot Return bps/dur
Aaa / AAA
Aa / AA
A / A
Baa / BBB
Ba / BB
B / B

1.06%
1.09%
1.09%
0.60%
0.45%
1.95%

18
17
15
8
6
23

 
Outperforming Sectors Tot Return bps/dur
Life Care
Single-Family

1.66%
1.48%

18
10

 
Underperforming Sectors Tot Return bps/dur
State GO
Prerefunded/ETM

0.67%
0.17

9
9

Change during December 2016 for the Standard & Poor’s / Investortools AAA rated Non-callable Municipal Yield Curve:

The tables above show returns for several indices and for various components of the Municipal Bond Index. To make returns in the tables comparable, each total return is divided by the relevant beginning-of-month effective duration, resulting in basis points per unit of duration (bps/dur).

Dan Garrett, CFA
Vice President
Investortools, Inc.