Given this generous tax treatment, pre-re muni yields are usually significantly below those on equivalent Treasuries.
Muni investors who believe these are isolated cases are living in a fantasy world.
The third peculiarity involves the large and inefficient nature of the muni market itself.
However, income from muni bonds doesn't count as investment income when calculating the surtax.
This post is part of a series of posts asking Is the Muni Bond Crisis Overblown?
These are the factors that often make the headlines when muni bonds are discussed.
On the other hand, Robert Lenzner says that muni bond defaults will be rare.
Investors will remain cautious and we could see continued outflow out of muni bond funds.
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Now obviously there are effects of a collapse in the municipal, or muni, bond markets.
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Regaining its reputation as a legitimate muni bond insurer will require more work, however.
Yes, we know that, with yields approaching 5%, the push to muni bonds seems hard to resist.
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Muni-yields fell mainly in the longer end where deals maturing between 23-30-years fell by six basis points.
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You cannot and should not generalize what happens in the distressed corporate market to the muni market.
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Various muni ETFs fell between 1.5-6% in sympathy with equities and over concern about the U.S. downgrade.
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That was my introduction to the game: carpools to the muni and long summer days of golf.
In April 2007, five-year insured muni bonds were yielding 4%, significantly less than the 4.7% offered on taxable five-year Treasuries.
Also, North Carolina issues high quality paper and we believe its muni bonds should continue to trade well.
As the muni yield curve steepens investors will start interpreting that steepening as a reflection of increased risk.
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When I compared rates of return for muni paper and Treasuries with comparable duration, I came in second.
They were told, It's a muni bond, it's safe, they're going to help old people like you.
AAA-rated muni bond maturing in five years is yielding around 1.8% now, which is about the same as five-year Treasury bonds.
If this happens, will it dampen demand for muni bonds from these states and cause them to lose value?
He had an interesting idea for what might help the muni bond market.
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The biggest tax breaks enjoyed by muni investors are at the federal level.
During the past few months, yields on long term muni paper went through the roof, from 4.75% to 6.5%.
Allstate (perhaps not ironically headquartered in Illinois) has trimmed its muni holdings by 13% over the last three quarters.
Yes, bond fund investors exacerbated the problem by piling in and out of muni funds at the same time.
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Has it really progressed since Paul Muni strapped on his beard and went to work as Zola and Pasteur?
Well, the fixed-income sector and muni markets rallied some 10% these past months.
In the muni space, the issuers I recommend are those who go by the rules and file financials annually.
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