Muni Bond (and Muni Bond Fund) Discussion

Only been buying individual munis for about 6-months, and today was the first day I wasn't allocated any new issue (NH AAA 26-year) from Fido, even after sticking with my order after the rate was was revised from 5.0% to 4.95%. I guess bound to happen eventually.........
 
The bond desk told me that in-state buyers get priority on new issues . NH does have a tax on interest and div, so 4.95% would be pretty attractive these days. Also, I wonder whether it was a smaller total dollar amount issue, so it got snapped up?

I do find it odd that you have to commit to buying without any idea how much you might end up with. I have gotten as little as 10% of my order, but never zero!
 
Yup, the Fidelity High Net Worth Bond Desk that I am lucky enough to have access to. They seem to know what they're talking about, so I try to learn a little each time I talk to them.
 
Good to know, what was weird was I got an automated "your order was filled, review it here" email but on the order page it said 0 filled. Oh well, I only ordered the minimum (5) so no big loss and was just trying to diversify among higher quality state issuers.
 
I had two muni bonds called today. Haven’t had a muni called in years. Timing is great for reinvestment.
 
Wow that is surprising! I have actually been swapping a few of my premature purchases for higher rate/ longer dated items.
 
COcheesehead said:
I had two muni bonds called today. Haven’t had a muni called in years. Timing is great for reinvestment.
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Wow - That would make me very happy were it to occur. I have a 3.125% CT bond that I figured I would be holding another 12 years callable starting now....
 
53anddone said:
Wow - That would make me very happy were it to occur. I have a 3.125% CT bond that I figured I would be holding another 12 years callable starting now....
Click to expand...

I don’t know where you hold it, but at Fidelity you can ask them to put it out to bid. I recently did that with a few of mine and I got just about par and then flipped into something with a much higher yield. Coupon and duration matter of course.
 
Thanks - Just checked and its callable 10/15 so I will wait and see what happens. Who knows.
 
That's my take also. However, the Issuer did just borrowed $32M from the state at 2.0% and since this is just a piddley little $460,000 at 3.125% why not pay it off?

Ha ha we will see in 11 days.
 
COcheesehead said:
I don’t know where you hold it, but at Fidelity you can ask them to put it out to bid. I recently did that with a few of mine and I got just about par and then flipped into something with a much higher yield. Coupon and duration matter of course.
Click to expand...

Great to know, I do have some stuff that I would like to "upgrade" but aren't actively traded so had been putting off requesting a bid figuring I would just get low ball desperation offers
 
imbatman said:
Great to know, I do have some stuff that I would like to "upgrade" but aren't actively traded so had been putting off requesting a bid figuring I would just get low ball desperation offers
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It’s highly unlikely you’ll ever see an open market bid for a muni. If you request a bid and it’s not to your liking, you don’t have to accept it. You need to evaluate the bid based on total return too. How many coupons have you collected plus the bid price. You might find you are in the green.
 
I think the last 3-4 new issues I have bid on have all come back with reduced yields. Today CT munis went from 5.4% to 5.25%. Guess they have plenty of demand at this point.
 
Yup, i cut my participation request for those CT munis in half yesterday when I got the email with the yield reduction. The 5.4% actually got reduced to 5.35% even before the participation window closed, then repriced down again.
With long treasury yields up so much over the past few weeks, I was a little surprised to see so little movement in munis. I guess it tells us that the long treasuries were overvalued while the muni market was more fairly priced all along?
 
nelsonowe said:
Yup, i cut my participation request for those CT munis in half yesterday when I got the email with the yield reduction. The 5.4% actually got reduced to 5.35% even before the participation window closed, then repriced down again.
With long treasury yields up so much over the past few weeks, I was a little surprised to see so little movement in munis. I guess it tells us that the long treasuries were overvalued while the muni market was more fairly priced all along?
Click to expand...

I had almost 100% munis in my taxable account and needed a taxable bond to be at 6% or higher for the tax equivalent yield to even begin to make sense. Well we are now there. I can buy quality non callable long ish duration bonds yielding mid 6’s. If those rates are still around when I have a bunch of munis mature in the next 60 days, I may add more taxable bonds to my taxable account.
 
New on Fido

CA2600CK3 CO HSG (AAA) 5.40% maturing 10/01/2066 with call starting 04/01/2032

....edit sorry previously had a TAXABLE bond in here as well which I removed
 
Last edited:
That 5.4% is TE.

I previously also had a 5.633 issue there that I believe Fidelity initially listed as TE but corrected to Taxable. Or I misread, not sure now but removed regardless.
 
imbatman said:
That 5.4% is TE.

I previously also had a 5.633 issue there that I believe Fidelity initially listed as TE but corrected to Taxable. Or I misread, not sure now but removed regardless.
Click to expand...

I searched on the original post. That was a taxable muni. I didn’t see your update right away. Sorry.
The tax free one matures in 2066 yikes.
 
OK, I am confused. Are there errors on the Fido web page?

I was just looking at these CO Hsg Auth issues. I see many listed as TAX EXEMPT and only one is taxable that matures in 2026.
 
Yes I think that is correct. Initially I could have sworn they were all TE when first listed, but now there is a single Taxable version (the highest coupon) with all others being TE.
 
Been a rough month for buying new munis (yields dropping) but good for my holdings.

Just this week most of the new AAA offerings are all much lower offering initially and then get a 0.05 - 0.10 reprice as well.

Anyone have any good newsletters you get for updates on the muni market? I just found this one and thought I would pass along for others:

https://www.raymondjames.com/-/medi...ghts/bond-market-commentary/bond_investor.pdf
 
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