cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Frequent Contributor

Barron's Cover is on Munis

https://www.barrons.com/articles/muni-bonds-have-started-to-rally-you-should-get-on-board-5158535117...

Cover Muni Bonds Have Started to Rally. Why You Should Get On Board – And Where to Find Bargains”. State and local governments face economic downturn, yet munis, with low default rates, are rallying. The Fed will also buy investment-grade munis. 70% of $3.9 trillion muni market [almost the same for last 10 years, so munis have shrunk as % of the bond market] are held by retail investors. In the recent selloff, HY munis were hit very hard. 

OEFs: VWITX, PMLAX, MKINX, EITAX; HY NHMAX

ETFs: MUB; HY HYD

CEFs: NEA, MMU, BTT; HY NMCO

YBB
12 Replies
Highlighted
Explorer ○

Re: Barron's Cover is on Munis

Yogi,

Thanks, that's a great help. Any thoughts on VTEB?

0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis


@PTG wrote:

Yogi,

Thanks, that's a great help. Any thoughts on VTEB?


VTEB is like MUB that is mentioned.

Barron's tends mention things like "for example", and isn't comprehensive in its list of things.

YBB
0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis

Thanks Yogi!

Curious how people feel about Vanguard High Yield Muni fund admiral- VWALX? Has rallied here recently in the past week, after selling off somewhat 1-2 weeks ago. 

Win
0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis

@Win1177 , much of the article focuses on investment-grade munis - funds and individual munis. HY muni are mentioned for their high yields and higher declines in this selloff. It is mentioned for example that CEF NMCO was down -44% from Mar 10 to Mar 23. 

Having said that, personally, I have been accumulating core-plus and HY muni funds. HY muni VWALX has much better quality munis than the biggest NHMAX that is mentioned. The way I look at munis, VWALX is a core-plus rather than HY.

YBB
Highlighted
Explorer ○○○

Re: Barron's Cover is on Munis

@yogibearbull:  I have held large positions in VWIUX (Vanguard Int Term Muni) and VWALX for many years.  The recent downturn has caused me to reduce these positions and look for funds to complement these 2 funds.  Can you share suggestions for funds to look at in the core-plus and HY muni bond categories?

PFMIX (Institutional version of the PIMCO PMLAX fund from the Barons article) has some appeal but PIMCO doesn't seem to provide a breakdown of  holdings by quality.  I need to look at the Mainstay MacKay fund further as well as other fund families but would appreciate other suggestions you can share.  Thank you.

0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis

@perrywinkle , my core-plus muni are OEF* NMBAX [its shorter duration cousin is FLTDX], DRTAX and CEF NZF, NVG.

*Available no-load/NTF at Fido & Schwab

YBB
0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis

music to my ear :-)

0 Kudos
Highlighted
Explorer ○○○

Re: Barron's Cover is on Munis


@yogibearbull wrote:

@perrywinkle , my core-plus muni are OEF* NMBAX [its shorter duration cousin is FLTDX], DRTAX and CEF NZF, NVG.

*Available no-load/NTF at Fido & Schwab


Thank you Yogi.  I will take a look.

0 Kudos
Highlighted
Participant ○

Re: Barron's Cover is on Munis

Yogi,

About 3 days ago I bought OPTAX in my taxable accounts. Do you see any negatives in comparison with NMBAX and DRTAX?

SRT

0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis


@sthanga wrote:

Yogi,

About 3 days ago I bought OPTAX in my taxable accounts. Do you see any negatives in comparison with NMBAX and DRTAX?

SRT


OPTAX is HY muni from a very aggressive group, Oppenheimer Rochester. For personal reasons, I stay away from OppenheimerFunds. I will wait to see what Invesco does with it.

NMBAX and DRTAX are core-plus muni - mostly investment-grade with some HY muni, so, no real comparison.

A fair comparison of OPTAX may be with NHMAX that is also the largest HY muni OEF.

 

YBB
0 Kudos
Highlighted
Contributor ○

Re: Barron's Cover is on Munis

Muni etfs are yielding around 1.75%. Which is same online saving account. So no point buying for the yield. or is it saving on tax.

So are we counting on future price appreciation here?

0 Kudos
Highlighted
Frequent Contributor

Re: Barron's Cover is on Munis


@yogibearbull wrote:

@sthanga wrote:

Yogi,

About 3 days ago I bought OPTAX in my taxable accounts. Do you see any negatives in comparison with NMBAX and DRTAX?

SRT


OPTAX is HY muni from a very aggressive group, Oppenheimer Rochester. For personal reasons, I stay away from OppenheimerFunds. I will wait to see what Invesco does with it.

NMBAX and DRTAX are core-plus muni - mostly investment-grade with some HY muni, so, no real comparison.

A fair comparison of OPTAX may be with NHMAX that is also the largest HY muni OEF.

 


OPTAX was bad in 2008 but not in 2020.  YTD OPTAX held better than most other HY Munis and why YTD performance is at -0.3% and ranks at the top 4%.

0 Kudos
Announcements