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Hayes thinks that the combination of higher rates and increasing supply of bonds could push yields higher by another 10 to 20 basis points, but he'll be ready to lock in rates if that happens. With the muni duration curve much steeper than the Treasury curve, he currently favors a barbell...
Rating allocation by underweighting underperforming AAA-rated bonds and overweighting outperforming A-rated and BBB-rated bonds Performance Detractors Underweight in Financials and Consumer Staples, and an overweight in Utilities Stock selection in Industrials, Energy and Materials Long duration positioning ...
Investing in municipal bonds involvescredit and market risks. The Fund may invest inhigh yield ("junk") bonds, which are subject to greater credit and market risks;leveraging techniques, which may magnify losses; andderivative securities, which may carry market, credit, and liquidity risks. Fixed...
Muni bonds are a great way to reduce taxes if you're in a high tax bracket, and new ETFs make it easy to invest.
Bank loans have the potential to offer attractive income while being more conservative than high yield bonds, adding less risk to portfolios. BKLNis based on the MorningstarLSTAUS Leveraged Loan 100 Index. The fund’s underlying index tracks the market-weighted performance of the largest institution...
The company then had to wait until the state reallocates bonds for 2017. Now that it has done so the bonds can be issued but rates have risen. The company had designed its business plan around a 6-percent rate for the bond, now they’re looking at 8.5 or 9 percent. Once financing ...
In addition, you may be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and "market discount" taxed at ordinary income rates. "Market discount" arises when a bond is purchased on the secondary market for a price that is less than...