Thursday June 23m 2022
Check out the credit market column on page B12 of today's WSJ. Closed end municipal bond funds are trading at 93% of the underlying value of bonds they hold.
As we have been noticing the prices of many such funds has fallen from around $14 to $10 just this year. That 20-30% drop in price has many retirees foolishly selling the bonds. Blackrock MYD is a typical example
Mondy flow at top appears to have reversed and now I patiently wait for PMO to pick up at bottom /with yields of 5-6% the tax free yield is much higher depending on your tax bracket. Say you are in the 20% braket, a hypothetical, the calculation is
6% / .8 =
7.5%, a great deal in world of a 3% thirty year Treasury
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