SELECT MUNICIPAL BONDS
In the $3.8 trillion muni bond market, only a handful of bonds meet our criteria. The cheapest bonds that we trade throughout the day usually don’t make it to any trading platforms. They go directly to our clients including RIA’s, money managers, individual investors, or our SMA program. Here are examples of a few bonds that we think are attractive today. If you want to find out information on these or see offerings specific for your needs going forward, contact us to speak to a portfolio manager today.
HAND-SELECTED MUNI BONDS
Individual Bonds Compared with Funds and ETFs
Here are a few examples of some high grade “kicker bonds” we like. We use call features to pick up yield without sacrificing credit quality. By introducing a call feature you are able to pick up 40-50 bps to where non-callable bonds would trade.
100 bonds (short sinker and only 11 year average life)
Tampa Florida Health Systems Rev 4.00 due 11/15/2033
Bonds are for Baycare Health system, rated Aa2 on their own
Unit cost: 103.74
This bond has an early sinker that start redeeming bonds 11/15/27
Yield to that sink: 3.50%
With the sinker the bonds have an average life of about 11 year.
Yield to average life: 3.60%
Pennsylvania ST Higher Ed Rev 4.375 due 6/15/2033
Bonds are rated Aa3 on their own
Unit cost: 103.80
Massachusetts ST GO 4.00 due 7/1/2029
State GO’s rated Aa1/AA
Unit cost: 105.53
FREQUENTLY ASKED QUESTIONS
New to municipal bonds? Looking to understand the fundamentals of the municipal bond market? You are in the right place.
STATEMENT OF DISCLOSURE
Past Performance is not indicative of future results. Moors & Cabot does not provide tax advice. Please consult a tax professional. The bond market can be volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties.
MARKET RESEARCH & PORTFOLIO GUIDANCE
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Relative to the U.S. treasury market, the municipal yield curve is steep and has been for many years now. Investors who have been willing to ...