Monday Oct 14 2013
Investors Seek Bargains in Battered Munis
At the end of the article one fund manager is buying 30 year New York Water Bonds yielding 5% claiming this is a great buy. Perhaps among current yields, but historically this is hardly a great deal.
No doubt it is a heady experience to be anointed as the next FED Chair. And no doubt Ms. Yellen believes that she alone can command the market as to what level interest rates should be. I am not so sure that is the case. As Jim Rogers says, the FED is A player not THE player in the markets.
A move to 7% on municipal bonds would generate quite a drop in the price of a 5% thirty year bond.
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