Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Munis Become Refuge From Bond Market Losses With Yields Falling

edited March 2021 in Other Investing
https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/munis-become-refuge-bond-market-173125206.html

Munis Become Refuge From Bond Market Losses With Yields Falling
Fola Akinnibi
(Bloomberg) -- America’s municipal bonds are proving to be a haven for fixed-income investors.

Even as speculation about resurgent economic growth drove up yields on corporate bonds and Treasuries this month -- saddling investors with losses -- tax-exempt debt moved in the opposite direction. Benchmark municipal-bond yields have dropped so far in March, delivering investors a return of 0.72%, according to the Bloomberg Barclays index.---




Anyone thinking adding more MUB.

Comments

  • Doesn't make sense in my tax bracket, I think. (10% bracket.) But I hold munis along with other flavors of bonds in my 3 bond funds. I am glad to hear a vote of confidence about PTIAX from @AndyJ, just lately. The others are PRSNX and RPSIX. Which gives me:

    PTIAX. 42.12% munis. (today's yield is 3.84)
    PRSNX. 4.65%. (current yield = 3.03)
    RPSIX. merely 0.24%. (yield is 2.83)

    ...And the balanced funds: BRUFX = 0 in munis.
    PRWCX. = 1.47%.

    Yields on my funds have gone UP lately, not down.
  • edited March 2021
    Right, munis have done considerably better than taxable rate-sensitive fare lately. I'm in OPTAX and two Nuveen muni cef's, plus what PTIAX has, and have noticed that MUB is doing about as well as most investment-grade open-end muni funds.

    If the supply shortage that Bloomberg article talks about lasts, the outperformance could continue for a while. Not sure I'd put all my chips on that, though.

  • Munis: taking a hit today right along with taxables.
  • Yes, I saw the sell-off, when I looked, at the end of the day. I like my mix of stuff. Down on the day by -0.54%.
  • edited March 2021
    While HY Munis are up this year...NVHAX 2.5%...NHMAX 2%
    Many bond funds are down...PTIAX -1.4%...PRSNX -0.95%...DODIX -2.7%...BND(Tot index) -4%
  • edited March 2021
    Last years dog IOFIX +5.18%

    And then there are some CEF bond funds - YTD returns Price/NAV all positive

    PCI 8.56/2.55
    PDI 5.69/1.67
    PFN 4.33/0.85
    PTY 1.65/2.28
Sign In or Register to comment.