Municipal Weekly Fund Flows Update_ For the week ending 12_25_2024, LSEG Lipper reported net outflows of $878mn, remaining in negative territory for a third week, following a 23-week streak of net inflows. Thu Dec 26

Key Points Industry or Company Involved - Municipal bond funds in the United States Core Views and Arguments - Net outflows from municipal bond funds for the third consecutive week, totaling $878 million for the week ending December 25, 2024. - Outflows driven by open-end funds (-$1.0 billion), with significant outflows across Investment Grade (-$465 million), High Yield (-$414 million), and Long Duration (Long Term funds lost $747 million). - ETFs posted modest inflows of $160 million. - Duration was a key factor, with Long Term funds seeing the majority of outflows. - Credit quality also played a role, with Investment Grade funds experiencing the largest outflows. - State-focused funds saw negative flows, particularly in New York and California. Other Important Content - YTD inflows are now tracking slightly lower at +$40.5 billion (+$26.6 billion open-end funds/+$13.9 billion ETFs). - HY municipal funds have attracted 13% of their aggregate assets under management (AUM) from the beginning of the year, compared to just 3% for IG fund inflows relative to their AUM at the year's start. - Market valuations are calculated as the difference between the change in reported AUM and the week's reported fund flows. - LSEG Lipper Global Fund Flows data is used for analysis. References - [15] - [19] - [26] - [27] - [32]