Puerto Rico’s debt crisis remains isolated and not symptomatic of the broad municipal bond market. Signs of contagion have not materialized and appear unlikely, although the probability of a default has increased.

Due to still expensive valuations and low yields, we believe the current low-return environment could potentially persist for high-quality bonds for several years.

Bond market’s reaction to Greek events has been muted so far and justifiably so.

Municipal supply has been a headwind for much of 2015 but appears to be tapering off ahead of a typical summer slowdown.

We continue to expect roughly flat bond returns for 2015, as the choppy market environment witnessed over the first half of 2015 continues.

Better economic growth and higher inflation expectations are driving confidence in the trajectory of the global economy.