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Here It Comes: Municipal Debt Funds
The Market Ticker ^
| 2010-11-11 12:24
| Karl Denninger
Posted on 11/11/2010 11:19:33 AM PST by The Comedian
(Unable to post graph, sorry)
That's IQI, a levered municipal bond fund. It yields 6.5% at present - totally unsustainable in today's ZIRP environment. At that discount (from recent price destruction) you're either getting the buy of the century or the portfolio is about to detonate in your face. Pick one.
(Excerpt) Read more at market-ticker.org ...
TOPICS: Business/Economy
KEYWORDS: debt; denninger; municipalbond; ticker
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(Unable to post graph, sorry)
This would be California municipal debt run by PIMCO. Yielding 7.8% (!!!) Again, you're either getting the buy of the century here, or you're about to get utterly destroyed.
(more at link)
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
To: The Comedian
2
posted on
11/11/2010 11:23:57 AM PST
by
OneWingedShark
(Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
To: CJ Wolf; houeto; Quix; B4Ranch; Whenifhow; Silentgypsy; blam; FromLori; Lurker; BenKenobi; ...
"Economic Holocaust" ping.
FReepmail me if you want on or off
The Comedian's "Economic Holocaust" ping list...
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
3
posted on
11/11/2010 11:24:30 AM PST
by
The Comedian
(Time and tide wait for no man. But who needs a bad magazine and cheap soap?)
To: The Comedian
I'd pay attention to these.....
That's IQI, a levered municipal bond fund. It yields 6.5% at present - totally unsustainable in today's ZIRP environment. At that discount (from recent price destruction) you're either getting the buy of the century or the portfolio is about to detonate in your face. Pick one.
This would be California municipal debt run by PIMCO. Yielding 7.8% (!!!) Again, you're either getting the buy of the century here, or you're about to get utterly destroyed.
4
posted on
11/11/2010 11:24:46 AM PST
by
FromLori
(FromLori)
To: OneWingedShark; FromLori
Thanks you two! Must have something to do with my browser/proxy combo...
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
5
posted on
11/11/2010 11:28:25 AM PST
by
The Comedian
(Time and tide wait for no man. But who needs a bad magazine and cheap soap?)
To: The Comedian
Muni bonds funds, especially CA, started slipping after the election.
The market is betting that the GOP House will not keep floating CA, IL and other states.
The music is going to stop.
PIMCO started their first equity fund recently. The 30-year bond bull is over.
6
posted on
11/11/2010 11:30:12 AM PST
by
Frantzie
(Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
To: The Comedian
Not a problem; what are friends for?
7
posted on
11/11/2010 11:35:57 AM PST
by
OneWingedShark
(Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
To: The Comedian
With today’s typical interest rates (usually less than 4%) this means is that this is a high risk investment. But at least they are being realistic. Today’s treasury note yields are far too low to attract investment, which has a lot to do with the Fed having to print money.
8
posted on
11/11/2010 11:50:26 AM PST
by
Blood of Tyrants
(Islam is the religion of Satan and Mohammed was his minion.)
To: OneWingedShark
Not a problem; what are friends for? In my experience, holding the guy while I punch, coming up with bail, and holding my beer while I yell "Watch this!"
Fixing graphical posting issues is a new one, so thanks again!
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
9
posted on
11/11/2010 12:14:41 PM PST
by
The Comedian
(Time and tide wait for no man. But who needs a bad magazine and cheap soap?)
To: The Comedian
forgive my ignorance. But what is that lady doing in your ping pic?
10
posted on
11/11/2010 12:15:27 PM PST
by
CJ Wolf
To: CJ Wolf
She’s burning Deutschmarks in the furnace to keep warm.
11
posted on
11/11/2010 12:21:40 PM PST
by
Erasmus
(Personal goal: Have a bigger carbon footprint than Tony Robbins.)
To: Erasmus
12
posted on
11/11/2010 12:27:21 PM PST
by
CJ Wolf
To: CJ Wolf
what is that lady doing in your ping pic? Shoveling worthless, hyper-inflated marks into a furnace in Weimar Germany, circa 1923.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
13
posted on
11/11/2010 12:40:39 PM PST
by
The Comedian
(Time and tide wait for no man. But who needs a bad magazine and cheap soap?)
To: The Comedian
Anyone buying any financial instrument from California must, I repeat MUST - realize that his money is part of the root of all evil. It could even be part of the ‘Great Satan’.
It is my considered opinion that all such money be immediately sent to my address in the interior of the Everglades for safe disposal.
14
posted on
11/11/2010 1:13:28 PM PST
by
GladesGuru
(In a society predicated upon freedom, it is essential to examine principles,)
To: GladesGuru
It is my considered opinion that all such money be immediately sent to my address in the interior of the Everglades for safe disposal. c/o The Comedian, of course.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
15
posted on
11/11/2010 1:25:21 PM PST
by
The Comedian
(Time and tide wait for no man. But who needs a bad magazine and cheap soap?)
To: CJ Wolf
forgive my ignorance. But what is that lady doing in your ping pic?
German kids use bricks of Weimar money as toys - a 1923 version of QE2.
A 100 Billion note ($100 Trillion in US money terms). Eventually the paper it was printed on had more value than its face.
16
posted on
11/11/2010 1:26:15 PM PST
by
Oatka
("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
To: The Comedian
“Government is the only entity which can take a valuable commodity like paper and make it worthless by adding only ink.” Milton Friedman
17
posted on
11/11/2010 6:19:07 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
To: The Comedian
“Only government can take a perfectly good piece of paper and make it worthless merely by smearing ink on it!” - L. von Mises!
18
posted on
11/12/2010 7:51:12 AM PST
by
April Lexington
(Study the Constitution so you know what they are taking away!)
To: The Comedian
Thanks for the heads up. I dumped most of my tax-free municipal bond funds last week and they are down over 3%, which is huge for that type of fund. Where can a fellow go to get a 1% rate of return these days?
To: crusty old prospector
Where can a fellow go to get a 1% rate of return these days? Go to your bank and take out every penny you've got, literally.
$0.50 face value worth of pennies is now worth $1.23, and nickels are worth over $0.06 each.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
20
posted on
11/17/2010 6:24:49 AM PST
by
The Comedian
(I enjoy progressives, especially in a light cream sauce.)
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