January 27, 2015

Doug Kass on Muni bonds

For the last 13 months my largest single sector bet has been closed-end municipal bond funds.

Given slowing global economic growth's salutary impact on bond prices (coupled with an aggressive ECB QE), I see nothing that derails the group over the first half of this year.

I continue to favor this sector both on a relative basis and an absolute one.

Discounts to net asset values still about 6% and non-taxable yields are at the same 6%! 

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