Feb
07

Muni Bond Trade

The AA+/AAA 20-year muni bonds are trading above a 5% yield. That means more than 7% on a tax equivalent basis for top US earners!!!! There have been a grand total of 54 bond defaults in the past 4 decades and not one state default since the Depression. For those concerned over a wave of muni defaults, relax. My bet is that unions–not bond holders–will pay the piper and be forced into new less generous contracts.

Share This Post
Facebook Twitter Email

Speak Your Mind

*