TAS: Muni CEFs used CDS and/or Auction Rate to enhance their yields. Because that mix is considered to be very risky currently, Federally Tax Free Muni CEFs like MAV and MHI have current yields above 10% payable monthly. But, it is highly unlikely that the Fed and Treasury will allow defaults on municipal bonds and the fallout which would follow, State Defaults.
Meanwhile on the Corporate side, the view going into 2009 was that the Bear was about to ravage Commercial Properties and some 36,000 retailers are expected to Fail. Will the Corporate Bond you chose be left unscated?
Of the two, Corporate Bonds and Muni CEFs, I prefer the Tax Free Muni sector. At least they have a safety net.
How Safe are Bond ETFs? [View article]
Meanwhile on the Corporate side, the view going into 2009 was that the Bear was about to ravage Commercial Properties and some 36,000 retailers are expected to Fail. Will the Corporate Bond you chose be left unscated?
Of the two, Corporate Bonds and Muni CEFs, I prefer the Tax Free Muni sector. At least they have a safety net.
IMHO
10 Key Asset ETFs: 2008 Review [View article]
Its a "good place to start". Start buying? Selling? Which ones are better than others?
Start what? IMHO