For example, I invest in California
muni bonds fund which gives me ~ 3 - 4 % annual dividend income - completely tax free.
Not exact matches
With the lows, there was some weird stuff, but 7 companies had rights and warrants, hitting new lows, and one new
muni bond fund, NKGD,
which was just noise.
(NYSE:
MUNI) is the ticker for Pimco Intermediate
Muni Bond Strategy ETF
which invests in municipal
bonds, while (NYSE: CORN) represents Teucrium Corn
Fund ETF that tracks the price of corn.
Two years ago, I bought 200 shares of Dreyfus Municipal Income, Inc. (DMF)
which had a yield of 7.5 % at the time,
which was an unusually good yield for a leveraged
muni bond fund.
Okay, it comes from one simple insight
muni investors want low volatility,
which means short duration
bonds, while most municipalities want to lock in long term
funding.
I've broken out interest income (
which is fully taxable at our marginal tax rate) from our tax - free interest (from CA
muni bond mutual
funds).
The need for short - dated tax - free
muni bonds drives hedge
funds (typically) to buy long
munis and sell short term debt to finance the
bonds,
which tax - free money market
funds buy.