Lock in predictable income in uncertain times...
Presidential Election years are different in MuniLand. Municipalities and authorities continue to robustly issue new MuniBon deals before November 5th, 2024. 30-Day visible supply exceeding $20 billion, which is the highest level since 2020.
These new deals continue to be "priced to sell" meaning lower price, more yield to the investor, but this only matters if you can get bonds and we are getting bonds for our clients. For example, many of our clients were allocated a new deal AAA-rated Florida MuniBond with a 4.65% coupon at par with a 7/1/2033 call feature.
This is 165bps or 55% more yield than the comparable AAA-rated scale. For 1000 bonds, or $1MM, this is $46,500 in Federal tax exempt income vs $30,000 evidenced by the AAA-rated scale.
https://www.bloomberg.com/news/articles/2024-08-27/municipal-bond-bargains-abound-in-rush-to-raise-debt-ahead-of-election
#MuniBond #Munis #TBillandChill #TBillnChill #WatkinsonMuniBonds #WatkinsonMunicpalBonds #MunicipalBondSMA #GetRealStayRich