comlb
Lieutenant
Posts: 68
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Post by comlb on Jan 3, 2023 15:15:16 GMT
The author refers back to an article he wrote in 1994 when Muni Bond funds yielded near 9%. The article cites a few muni bond funds: Nuveen AMT-Free Quality Municipal Income (NEA) - 4.85% yield Nuveen Quality Municipal Income (NAD) - 4.89% yield For someone in the 37% tax bracket, a 4.85% tax free yield is equivalent to a 7.7% taxable yield. The Junk Bond bellwether fund HYG yields 7.79%. Author also mentions opportunities in 1) a new Muni CEF, 2) time target muni funds 3) higher yielding muni funds that go after lower credit ratings. www.barrons.com/articles/buy-muni-bond-funds-51672411515?mod=hp_DAY_4 |
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Post by Fearchar on Jan 3, 2023 23:23:12 GMT
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Post by FD1000 on Jan 4, 2023 4:40:25 GMT
Below is a better explanation ( www.schwab.com/learn/story/muni-outlook-back-vogue). Quote: "We suggest staying up in credit quality in 2023....The chart shows the difference in yields between the AA, A, and Baa components of the Bloomberg Municipal Bond Index relative to the AAA portion of the index. The spread for the A index, for example, has risen to 75 basis points which—aside from the COVID crises— is the highest since early 2007." FD: the writer like many others concentrates mainly on the yield. Just because the yield is a certain number, doesn't mean the end result will equal to that number. Let's give an example. Based on the Nov 2022 dist VTEAX (VG inter Muni) pays about 2.7% annually vs ORNAX 4.8%. The difference is about 2%. The chart below shows that ORNAX made over 4.5% than VTEAX in a month. Usually with bonds, the more they lose, the more they gain. Note: the OP mentioned CEFs not bond OEFS. NEA has 40+% leverage Attachments:
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Post by anovice on Jan 4, 2023 17:56:05 GMT
Below is a better explanation ( www.schwab.com/learn/story/muni-outlook-back-vogue). Quote: "We suggest staying up in credit quality in 2023....The chart shows the difference in yields between the AA, A, and Baa components of the Bloomberg Municipal Bond Index relative to the AAA portion of the index. The spread for the A index, for example, has risen to 75 basis points which—aside from the COVID crises— is the highest since early 2007." FD: the writer like many others concentrates mainly on the yield. Just because the yield is a certain number, doesn't mean the end result will equal to that number. Let's give an example. Based on the Nov 2022 dist VTEAX (VG inter Muni) pays about 2.7% annually vs ORNAX 4.8%. The difference is about 2%. The chart below shows that ORNAX made over 4.5% than VTEAX in a month. Usually with bonds, the more they lose, the more they gain. Note: the OP mentioned CEFs not bond OEFS. NEA has 40+% leverage FD: What do you see as the differences between ORNAX and NHMAX? |
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Post by FD1000 on Jan 4, 2023 19:04:56 GMT
NHMAX has 20+% leverage.
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Post by Chahta on Jan 5, 2023 2:09:55 GMT
M* does not indicate NHMAX is leveraged.
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Post by chang on Jan 5, 2023 7:16:49 GMT
M* does not indicate NHMAX is leveraged. Morningstar for data? You can't be serious. Nuveen says 29.2% leverage: link |
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Post by Chahta on Jan 5, 2023 13:58:29 GMT
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Post by chang on Jan 5, 2023 14:05:18 GMT
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Post by Chahta on Jan 5, 2023 14:07:12 GMT
I have noticed M* does not cover some funds. VWSUX and VWIUX do not show up on search, as examples.
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Post by chang on Jan 5, 2023 15:39:55 GMT
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Post by anitya on Jan 5, 2023 20:13:36 GMT
M* has become a bit buggy. If you want to stay with M* service you have to be willing to duplicate your effort. I do use them but they can be trying. Likely, I will look for alternate services for routine needs like charts, quotes, etc. |
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