After my initial listing about Top 10 Municipal Bond CEF, the muni bond CEF has been down big time this past week (7-15% drop). Since most of the muni CEF is leveraged, investor should expect a higher volatility than usual non-leveraged fund.
As of Please trade accordingly. I still think it can be a long term investment vehicle. In my opinion, Couple factors can contribute this decline:
As of Please trade accordingly. I still think it can be a long term investment vehicle. In my opinion, Couple factors can contribute this decline:
- Treasury has been down after Fed announced QE2. Please check TLT (10 years+ Treasury ETF)
- Unknown from new tea party congressman/woman. Many new elected congress had campainged about cut spending. This may affected less fed fund for state level etc and state ran big deficit especially California, Illinois, and more.
- Unknown about tax structure. Extending Bush Tax Cut for all or only for middle class.
Looks at BKN, PMX, PML, PCK (CA Muni CEF), and more
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