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Municipal Bonds

Monday, March 18, 2013 - 12:49 PM
Dear Readers,

Municipal Bonds seem to have formed an intermediate bottom.

Today (3/18/2013) I bought a little of HYMB (SPDR S&P High Yield Municipal Bond ETF) and TFI (SPDR Nuveen Barclays Municipal Bond ETF).

We discussed a bit about it in an earlier theread:

http://www.depositaccounts.com/forum/thread/12897-muni-market-still-in-need-of-a-minder.html

Yours Truly.
Anonymous
3
ytytytyt64 posts since
Feb 28, 2013
Rep Points: 197
1. Monday, March 18, 2013 - 2:01 PM
Dear Readers,

Yield for Muni Bond ETFs can change every business day ...  I see that for HYMB the 30 day SEC yield is 4.28% and tax-equivalent yield is 6.58% ... Also for TFI the same numbers are 1.78% and 2.74% respectively. These numbers are as of previous business day.

URLs are:
    https://www.spdrs.com/product/fund.seam?ticker=HYMB
    https://www.spdrs.com/product/fund.seam?ticker=TFI

Yours Truly.
Anonymous
2
ytytytyt64 posts since
Feb 28, 2013
Rep Points: 197
2. Wednesday, April 3, 2013 - 9:16 AM
Dear Readers,

Since March 18, both TFI and HYMB have gained a few pennies in price ... And they have returned decent dividends.

Yours Truly.
Anon
2
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
3. Wednesday, April 3, 2013 - 5:40 PM
HYMB has a duration in excess of 10 years, meaning for every 1% rise in interest rates, you will lose 10% of your principal. Also, because they are high yield (junk bonds), if we have a downturn in the economy, you can lose significant money.
2
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
4. Saturday, April 6, 2013 - 11:37 AM
Dear Readers,

Okay ... HYMB closed on 3/18/2013 at $58.34, and closed at $58.81 yesterday (4/5/2013).  That's a gain of 0.81% in 18 days. And it paid $0.22 dividend, which is federal income tax-free March end.

... so far so good   ;-)

Yours Truly.
Anon
1
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
5. Wednesday, April 17, 2013 - 10:06 PM
.

Dear Readers,

Stock Market experienced higher volatility for past few days, but Municipal Bonds have held steady, even the ones that are of junk category held in HYMB.

As of today (4/17/2013) HYMB closed at 58.89. 

Once again ... so far so good   ;-)

Yours Truly.
Anon
1
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
6. Tuesday, April 23, 2013 - 8:48 AM
.

Dear Readers,

Sold both TFI and HYMB.

HYMB was bought at 58.40 and sold at 58.90, which is capital gain of 0.86% in just over a month, and it gave dividends of $0.22 also which was federal income tax-free/exempt, and amounts to about 0.38% also in about one month.  Similar type of gains for TFI!

 ... There is a (sort of) related thread around, where futile/half-hearted comparison of CD is made with Bond Fund.  Comparison goes only upto interest/dividends, and it does not accout for any capital gain/loss. 

http://www.depositaccounts.com/forum/thread/13389-cd-vs-bond-fund-a-case-study.html

Yours Truly.
Anon
2
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
7. Thursday, May 23, 2013 - 9:43 PM
Dear Readers,

TFI has been declining for last few days, and it is becoming attractive once again.  If it declines by about 2%, then I'll buy ...

Yours Truly,
- Anon
In FED I Trust  :-)

 
1
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
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