FYI: On May 14, the municipal-bond market’s biggest investors may be in for a shock.
That’s when new rules will require brokerage firms to start disclosing some of the fees they charge individuals to buy and sell state and local government debt. Those fees, which firms build into the trades by marking the price up or down, can be substantial: They averaged about 1.1 percent on investment-grade bonds in 2016, or $1,100 for a $100,000 bond, according to S&P Global. With 10-year AAA bonds yielding 2.5 percent, those transaction costs can eat up several months of a returns.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-04-23/mutual-funds-stand-to-gain-as-muni-buyers-get-first-look-at-fees
