Blackrock
Muni Yield Investment Quality (MFT) is a closed end fund that seeks current income exempt from regular Federal income tax through investment in insured investment grade municipal bonds.
Not exact matches
Whereas other
muni funds might accumulate Illinois debt based on its high
yield, regardless of risk, we generally have stuck to
investment - grade
munis.
Got really attracted to the idea of selling my
investments in VHDYX (up 10 - 12 %) and moving them to
MUNIs... divided
yields are about the same and the
MUNIs are federal tax free....
High
yield munis did even better than the broader
muni market in 2014, but I still have a hard time poking holes in the
investment case.
While there has been a spread between
investment grade bonds and Illinois G.O.s the
muni market kept the
yields for these bonds relatively consistent up until now.
With this information, an
investment in the
muni bond with the tax - equivalent 6.54 %
yield would be a better
investment than a taxable bond
yielding, say, 5.25 %.
Got really attracted to the idea of selling my
investments in VHDYX (up 10 - 12 %) and moving them to
MUNIs... divided
yields are about the same and the
MUNIs are federal tax free....
High
yield municipal bond
yields and relative spreads to
investment grade
munis have moved to lows not seen since 2008.
Rather than pursue cross-over corporates or high -
yield or even long - term
investment grade corporates, we have stayed near the middle of the curve with funds like: (1) SPDR Nuveen
Muni (TFI), (2) Vanguard Total Bond (BND), (3) iShares 7 - 10 Year Treasury (IEF) and (4) iShares 3 - 7 Year Treasury (IEI).
Similarly, we downshifted from a target allocation of 30 % income across a wider array of income types (e.g., short, long,
muni, treasury,
investment grade, preferreds, higher
yielding, etc.) to 25 % intermediate
investment grade and
munis.
As these are revenue bonds with slightly longer durations the average
yield is naturally higher than the overall market, Year - to - date this group of bonds have outperformed the
investment grade
muni market.
It follows that conservative - oriented folks need to revisit the risk spectrum — from
investment - grade
munis to high -
yield corporates to master - limited partnerships to dividend - producing equities to real estate
investment trusts.
Treasuries, which are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest, are considered the most stable fixed - income
investment, and rising Treasury
yields, as occurred in early 2018, tend to put downward pressure on
munis.8 However, Treasuries are more sensitive to interest rate changes, and stock market volatility makes both Treasuries and
munis appealing to investors looking for stability.