SubscribeAll Posts Tagged With: "municipal bonds"
Municipal Bonds: Two Muni-Bond Fund Investment Opportunities
At the beginning of 2009, institutional and individual investors were sitting on a mountain of cash, pulling money out from everywhere – including equities, commodities and municipal bonds. That’s nearly $9 trillion, according to the Federal Reserve.
But those same investors are starting to unleash a landslide of cash into the markets. According to the April, 2009 Merrill Lynch Survey of Fund Managers, optimism about global economic growth has reached its highest level since 2004, prompting investors to lower their aversion to risk.
The percentage of investors who are overweight in cash in their accounts fell to 28% in April from 41%…
22May2009 | Investment U | 0 comments | ContinuedMunicipal Bonds: A True Once-in-a-Lifetime Opportunity
Since the financial panic hit in earnest over the past two weeks, all sorts of interesting opportunities have developed with varying degrees of risk.
Today I want to point out one that is so rare it is without precedent. I’m talking about the current yield on municipal bonds relative to Treasuries.
As you know, investors have flocked to Treasuries as a safe haven during the current economic storm. T-bills are yielding less than a half of one percent. Ten-year and 30-year Treasuries are yielding about 3.5% and 4% respectively.
Yet municipal bonds of 15-year and higher maturities are currently yielding more than 5%.
Why is…
17Oct2008 | Investment U | Comments Off | Continued
Loading ...
