Can someone please recommend a broker or institution to park some cash in muni bonds. I have very little experience with muni's so any help is appreciated. Thanks in advance.
The broker/institution that you need will be based on your investment objectives........ Best to list what you are trying to accomplish with this investment, as different brokers specialize in differnt types of municipal securities...... Just my 2 cents as an ex-muni trader
http://www.nuveen.com/ http://www.blackrock.com/indiv/products/products.html Both have great open end and closed end municipal products. They have a huge number of offerings between them, all with a different twist. Makes for an easy way to diversify, vs. individual muni bonds. Look at blackrock's fixed term muni products to match your duration, might be a better idea too, given today's low rates....that can likely climb.
Hi Golablue, I'm looking to park some money for greater diversification. Maybe around 5% of my portfolio. It's basically money that I have been rolling over in CD's for the past few years and I want to move some out and into alternative investments (tax free specifically). I have already spoken with a broker from Lebenthal and figured I would ask the experts on ET before I make a move. Any help is greatly appreciated.
griffin kubik and stephens in chicago; their chief economist, Brian Westburyappears on CNBC with some regularity. Classy people
Longhorn...... Frist, it's best that you specify your liquidity needs, maturitiy needs, tax objectives, and most important, your risk tolerance. Once these objectives have been stated, you will then be able to decide which route is best for you: shares of a muni fund or individual bonds. Once you've come to this conclusion, suggestions can be made as to the best place for you to achieve your investment objectives.
I guess I never understood the appeal of muni bonds. The yield is always discounted by an amount more or less equal to the top federal tax rate. While the after-tax yield of a T-bill or T-note is the same as a AAA muni bond, the risk of default is not. The Treasury bond is virtually risk free. Cities, counties and states do go into default from time to time.