OBSERVATIONS ON THE MUNI°BITES MUNICIPAL BOND MARKET JULY 2014 CHART OF THE MONTH HOLDERS OF MUNICIPAL BONDS IN $ TRILLIONS, 2013 DATA Insurance Companies 467.4 13% Other 126.7 3% Individuals 1,617.2 44% Banking Institutions 443.2 12% Mutual Funds 1,016.8 28% »» Individuals dominate the municipal market, representing well over half of all holders of municipal bonds as of 2013. »» Unique opportunities arise as many individual investors “follow the herd”. Disciplined investors can take advantage of market mispricing when most other investors are exhibiting similar behavior and avoiding underpriced (or seeking overpriced) securities. LOS ANGE LES | BOSTON | LONDON | PARIS PAYDEN.COM .