Tag Archives: Meredith Whitney

Sector Watch: Municipal Bonds

Municipal bonds are issued by states and municipalities and typically have tax advantages relative to other fixed income assets.  In general, income from muni bonds is tax exempt at the federal level and at the state level for investors living in the issuing state.  Municipal bonds have historically been favored by investors in high tax brackets who, of course, derive more benefit from the tax exemptions by virtue of being in the highest tax brackets. Continue reading

Jim Grant’s Alternative to Muni Bonds: REITs

In a recent interview with Bloomberg (video below) bow-tie wearing linguistics lover and bond market expert Jim Grant made it quite clear he’s not a buyer of municipal bonds. Instead, he likes certain REITs specializing in the purchase of mortgage backed securities, some of which are pretty good businesses he thinks and offer yields north of 10%. Continue reading