STREET CRITIQUE Coming Up - Marilyn Cohen
Wednesday, July 02, 2008Watch it Wednesdays on NBR!
STREET CRITIQUE brings you more analysis of Wall Street trends. Join NBR Anchor Paul Kangas as he interviews leading market strategists and financial experts about market movements and forecasts.
The STREET CRITIQUE guest for Wednesday, July 2nd is...
MARILYN COHEN, President of Envision Capital Management. Marilyn offers her insight into the deteriorating bond market. She also discusses her new "10 Commandments of Muni Bond Investing."
Marilyn Cohen's 10 Commandments of Muni Bond Investing
Marilyn Cohen has developed a new "10 Commandments of Muni Bond Investing." The commandments are listed below. Detailed discussion of them can be found on the Envision Capital Management website. These commandments were first published in "Forbes Tax Advantaged Investor" newsletter.
- Thou shalt know that muni bond credit quality must stand on its own.
- Thou shalt assume municipal bond insurance is worthless unless the insurers are FSA (presently under scrutiny), Berkshire Hathaway or Assured Guaranty Ltd.
- Thou shalt never buy or sell municipal bonds in the secondary market without using TRACE*
- Thou shalt always negotiate prices in the secondary market and never take your broker's first offer as the final gospel
- Thou shalt always determine liquidity by knowing issue size and maturity size
- Thou shalt always consider the taxable equivalent when buying municipal bonds
- Thou shalt expect market volatility in leveraged, closed end municipal bond funds
- Thou shalt not traffic with the pagan municipal bond hedge funds for they are the work of Satan
- If thou has less than $200,000 for a municipal bond portfolio then an open end muni fund shall be your house of worship
- Thou shalt follow these Ten Municipal Bond Commandments or face communion with a portfolio of questionable credit quality and mediocre returns.
*For more information about TRACE, see these external websites: InvestinginBonds.com and FINRA.
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