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Municipal bond prices continue to push higher despite what may be a trend of cities realizing it...

Municipal bond prices continue to push higher despite what may be a trend of cities realizing it may be a better idea not to pay what they owe. As with preferred shares, mREITs, MLPs, and anything else with a reasonable yield, strong demand vs. limited supply rules the action. MUB +7.4% Y/Y, while yielding more than 3%.
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Comments (2)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    its called a race for yields....this is bad too...pensions..hedgie... have to run to the yield to keep their jobs....does not matter if its bad debt...they only live for the quarter...quarter by quarter..
    25 Jul 2012, 03:20 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Yes, and what happens when there is a selloff of overbought positions?
    25 Jul 2012, 03:28 PM Reply Like
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