Comments on: Muniland’s flight risk http://blogs.reuters.com/muniland/2012/10/31/munilands-flight-risk/ Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Tschurin http://blogs.reuters.com/muniland/2012/10/31/munilands-flight-risk/comment-page-1/#comment-1933 Mon, 05 Nov 2012 19:29:49 +0000 http://blogs.reuters.com/muniland/?p=12091#comment-1933 Cate, I don’t think it’s that simple. If your argument is that you are unlikely to find municipal bond funds in 401k’s and other tax-deffered accounts, then you you also have to acknowledge that such tax-deferred accounts are where people are more likely to do “market timing.” That means they are less likely to sell the muni funds in their taxable accounts, because they they might face taxes on their capital gains; and more likely to sell their treasury and corporate bond funds in their tax-deferred accounts, where they typically would face no capital gains tax consequence. The above suggests that muni’s could have an advantage in terms of the stability of their shareholder base at a time of rising interest rates.

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By: StJohnsWood http://blogs.reuters.com/muniland/2012/10/31/munilands-flight-risk/comment-page-1/#comment-1925 Sat, 03 Nov 2012 12:31:41 +0000 http://blogs.reuters.com/muniland/?p=12091#comment-1925 “I’m not a big fan” of fixed income specialists who don’t know the difference between “principal” and “principle”. This article is confused and confusing; a muddle of the impact of taxes and interest rates on the capital value of bonds with no mention of inflation. An article such as this one points out that those who seek to have a hand in regulating markets (such as the author) are sometimes the least informed – alas, another Elizabeth Warren wannabe.

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