Municipal bonds have regained their safe haven status as volatility returns to the stock and bond markets. They have also been getting a boost from yield-starved, go-anywhere overseas investors, said Robert Amodeo, portfolio manager for Western Asset Management. "Overseas investors are looking for yield in liquid, stable markets and muni investors should take that as a vote of confidence," said Amodeo. Amodeo oversees the Western Asset Managed Municipals Fund (SMMYX) which is up 4.1% so far in 2016, according to Morningstar.
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