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Old 09-21-2022, 08:27 PM   #961
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I picked up a small bond today from the Texas Transportation Commission, Central Texas Turnpike System revenue bonds. 5% coupon, maturity 8/2029 with the call at 8/2024. 101.8% of face, I paid a little over 102 with markup. CUSIP 88283KAS7.
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Old 09-22-2022, 07:04 PM   #962
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Any predictions on home much lower muni bond funds will go? They are adjusting quickly. Thankfully due to knowledge gained here we got most out before it all went to heck but old habits still die hard and kept a bit in there and currently sitting on a chunk that is down 5.5%. Specifically VWAHX at a cost basis of 10.72, currently at 10.12. Tax bracket is 25% so taxable yield for me is about 4.1% roughly what CD's and treasuries are at now.

Cut my losses or ride it out. Do not need the money in next 5 years and overall maybe 15% of total portfolio. My gut says sit on this chunk and wait for rates to go other way eventually. Then my gut says, get out and reinvest in treasury ladder and be done. In other words, flip a coin?

I think we have at least another 100bp in rate increases over next 12 months so where this stops I don't know.
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Old 09-23-2022, 07:31 AM   #963
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I sold a muni that had its third downgrade in a row. Now boarding on junk. It was in the worst space for muni defaults, elder care facilities. I have never had a bond default, donít need one now.
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Old 09-23-2022, 07:39 AM   #964
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I sold a muni that had its third downgrade in a row. Now boarding on junk. It was in the worst space for muni defaults, elder care facilities. I have never had a bond default, donít need one now.
Yeah, those elder care coupons can be tempting, but I think you have good reason to be wary. I also stay away from suburban tax-incremental development districts. I've seen too many struggle financially.
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Old 09-27-2022, 07:16 AM   #965
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Curious how much of folks investible assets they hold in Munis? I am around 15% at the moment and with the recent run up am tempted to add.

I buy individual bonds for my state (VT) and believe that in a high tax state like ours they are pretty valuable. Yields have finally gotten pretty attractive.

I just turned 60 and most of the bonds I bought will help cover me until SS and RMD times.
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Old 09-27-2022, 07:34 AM   #966
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Curious how much of folks investible assets they hold in Munis? I am around 15% at the moment and with the recent run up am tempted to add.

I buy individual bonds for my state (VT) and believe that in a high tax state like ours they are pretty valuable. Yields have finally gotten pretty attractive.

I just turned 60 and most of the bonds I bought will help cover me until SS and RMD times.
1/99 AA here - with most of the 99 in individual munis. As my maturities and redemptions come in, I reinvest in new/additional munis. Interest rate hikes are simply increasing future cash flow for me.

In my view, the key to making munis work is to be comfortable regardless of what is happening in the markets. Lots of folks are really beginning to squirm because they talked a big game preaching how they were good with their AA, when in reality, they never experienced a (deep) bear market. So, know thyself, don't over-allocate to munis or any other asset class. Nibble, spreading the money around...long term, short term, etc. Even if you choose to do it through muni bond funds - do not plow everything in to just one fund (category).

If buying individual bonds, there are some pretty great deals available right now, and there will likely be more between now and year end. After that, my crystal ball is very cloudy.
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Old 09-27-2022, 11:00 AM   #967
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Sage Advice. I agree that for the next few months things look pretty attractive in Muni Land.
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Old 09-27-2022, 03:45 PM   #968
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Curious how much of folks investible assets they hold in Munis? I am around 15% at the moment and with the recent run up am tempted to add.

I buy individual bonds for my state (VT) and believe that in a high tax state like ours they are pretty valuable. Yields have finally gotten pretty attractive.

I just turned 60 and most of the bonds I bought will help cover me until SS and RMD times.
I hold about 50% in munis, 70% total in bonds. Almost all are individual issues.
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Old 09-29-2022, 10:56 PM   #969
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I have been a happy owner of a a muni bond fund a-la VCADX for a while; and thanks to the good on this forum I am purchasing bonds using the Fidelity tool.

My purpose is to eventually set-up a bond ladder and have a higher return than VCADX. However I have had a few bonds recalled. So I am facing the possibility to have to constantly buy some new funds to replace the recalled ones.

I am surprised to have those funds recalled in such a climbing rate environment (those funds had a coupon rate of 5%). Am I doing something wrong? Did I miss indication those funds were facing recall possibility? I was looking for a good deal, maybe the sellers knew something I didn't?
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Old 09-30-2022, 04:33 AM   #970
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I have been a happy owner of a a muni bond fund a-la VCADX for a while; and thanks to the good on this forum I am purchasing bonds using the Fidelity tool.

My purpose is to eventually set-up a bond ladder and have a higher return than VCADX. However I have had a few bonds recalled. So I am facing the possibility to have to constantly buy some new funds to replace the recalled ones.

I am surprised to have those funds recalled in such a climbing rate environment (those funds had a coupon rate of 5%). Am I doing something wrong? Did I miss indication those funds were facing recall possibility? I was looking for a good deal, maybe the sellers knew something I didn't?
You shouldn't fault yourself for bonds being called and not having the foresight to see it coming. However, at this time if you are having bonds called, it's not a particularly terrible thing as you can pretty easily find replacements at higher yield and likely better quality. Some of the investing gurus are beginning to say that bonds (in general) are now a good place to put investment money.

One thing that you can do in advance of buying any muni bond is to check the filings on EMMA...which you should be doing to some extent anyhow. Many times, if an issuer is considering calling, they will make filings (voluntary disclosure) that they are considering issuing new bonds...for the purpose of retiring existing outstanding bonds. They may even specifically indicate the bond issues under consideration for being called.

Aside from that, the most you can really do is simply compare coupon rates with current interest rates (for similar maturity) and apply standard logic - would they save a lot of money by refinancing at this time? Does the issuer have a lot cash on their balance sheet which they could use to redeem some of their outstanding (higher coupon) bond issues?

Regardless of all this, when purchasing any bond, you do need to consider the call dates as well as mandatory sinking fund redemptions and figure that in to your yield/total return calculations.
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Old 09-30-2022, 01:43 PM   #971
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Just bought 9 year A+ rated non-callable/no sinking fund 7.597% YTM (2.73% coupon).
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Old 09-30-2022, 03:41 PM   #972
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I hold about 50% in munis, 70% total in bonds. Almost all are individual issues.
About the same here.
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Old 09-30-2022, 03:42 PM   #973
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Just bought 9 year A+ rated non-callable/no sinking fund 7.597% YTM (2.73% coupon).
Nice buy!
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