Any reason why a taxable client in a high tax bracket SHOULDN’T be in muni bonds???
Muni’s will face a severe funding problem, starting next year. New accounting rules require health benefits to go on the balance sheets. Look for some defaults
Defaults. Tax base shrinkage. Declining economy leads to lower revenues. Monoline insurers gone. Liquidity problems if they need to get out. They’ll be out of a job soon so sheltering their non-existent income makes no sense.
Yep Joey - the events of today are exposing the fraud of municipals and money-market funds being “safe” investments. Just like Auction-rate securities. Expect defaults at the local and state government level.
Yes but even if defaults tripled…muni’s are still cheap at this level