Register to leave a comment, or log in if you already have an account
The Nuveen funds have 150-250 different securities in them so individual issuer risk is virtually ZERO. Maybe the yield goes up a bit (you lose money in the fund) as the market psychology worsens (if it does) but eventually the yields will come down and fund prices rise. Yields are 7.5-7.8% free of federal income taxes!!!!! That’s equivalent to a 10%+ taxable yield at a 28% tax rate.
everytime ive ever been prescribed antibiotics i usually just lie and say ill take them but then throw them out. it’s not good to take them too much. if there ever really is a super bug that comes out, or something really bad goes down like hardcore biowarfare, those people who took antibiotics for stupid stuff aren’t going to survive.
Lots of GO bonds insured. Many are etm/pref and backed by US treasuries.
Municpalities are numerous ways to pay off their obligations and are loathed to go the default route.
indeed dibs, the sell off has been punishing, but this creates buying opptys as dave said above.
m4l, since most insurers are toast, bonds are trading on underlying fundamentals. Most underlying “junk” was not insured which means most of that not in mutual funds.
M4L – I don’t think general obligation bonds are insured – the thought is you just increase taxes.
Dave, maybe a buying opportunity for existing bonds, but going forward, if municipalities have to pay very high rates, makes it harder for municipality to function.
The Nuveen funds have 150-250 different securities in them so individual issuer risk is virtually ZERO. Maybe the yield goes up a bit (you lose money in the fund) as the market psychology worsens (if it does) but eventually the yields will come down and fund prices rise. Yields are 7.5-7.8% free of federal income taxes!!!!! That’s equivalent to a 10%+ taxable yield at a 28% tax rate.
everytime ive ever been prescribed antibiotics i usually just lie and say ill take them but then throw them out. it’s not good to take them too much. if there ever really is a super bug that comes out, or something really bad goes down like hardcore biowarfare, those people who took antibiotics for stupid stuff aren’t going to survive.
*rob*
Lots of GO bonds insured. Many are etm/pref and backed by US treasuries.
Municpalities are numerous ways to pay off their obligations and are loathed to go the default route.
Have a look at closed end muni funds. Some good deals out there.
indeed dibs, the sell off has been punishing, but this creates buying opptys as dave said above.
m4l, since most insurers are toast, bonds are trading on underlying fundamentals. Most underlying “junk” was not insured which means most of that not in mutual funds.
M4L – I don’t think general obligation bonds are insured – the thought is you just increase taxes.
Dave, maybe a buying opportunity for existing bonds, but going forward, if municipalities have to pay very high rates, makes it harder for municipality to function.
JB, I use adahill at wcslending dot com
Yeah no kidding DIBS. Everyone knows only women and gays seek medical advice or take sick days. I’m very disappointed with myself.
Jinx, deLepp.
Individuals have been taking money out of muni funds (the selloff) over the past 15 weeks at record amounts.