jahowle

Preferreds and Munis

Other than the fact that both MUB and PFF have interest rate risk there is very little correlation in the credit risk of the two. Therefore I would find it hard to draw the analogy. PFF is 78% financials and interest rates are rising. It may get some help if rates turn south again. Watch out for another fall in MUB if one of the old bond insurers gets taken into receivership.