.crazylegs..

Our Run-In With Auction Rate Securities - And What It Taught Me About Markets

@arenas - because the rates won't be around for any solid credit for any length of time. you'll buy these and hold them until the municipality refinances out of them. the greater the penalty rate, the more incentive the institution has to refinance.

One broker I use to custody client accounts will let me trade them to another family account, but they wouldn't let me buy the bonds from them. So I'm buying a tax free bond in an IRA account and the yield is better than the taxable municipal I had to sell to make room. Weird illiquid market right now.