Written by David Fabian, October 22nd, 2016
Municipal bond funds are typically held for their tax-free income properties and low risk profile rather than their growth prospects. These investments are beloved and often over-weighted in large taxable accounts for their ability to skirt IRS levies that traditional bond income generates. Read more
Written by David Fabian, October 20th, 2016
Choosing an investment advisor or money manager should be a careful process based on diligent research. The best relationships start with a shared investment philosophy, followed by a building of trust through education and transparency. Read more
Written by David Fabian, October 18th, 2016
The first six months of 2016 were characterized by a sharp drop in U.S. interest rates as investors flocked to the safety of Treasury, municipal, and investment grade corporate bonds. This created significant inflows to diversified exchange-traded funds that track these asset classes in an attempt to ride the building wave of momentum. However, as the ship became overloaded to one side, it was only a matter of time before it began to swing back towards a relative state of equilibrium.
One major indicator of this trend, the 10-Year Treasury Note Yield ($TNX), fell to an all-time low of 1.34% near the mid-point of the year. This index has now reversed course and risen to a four-month high near 1.75%.
Written by David Fabian, October 17th, 2016
The arrival of new strategies within the closed-end fund (CEF) universe is always an interesting event. There are much fewer new CEFs released on an annual basis than the exchange-traded fund world, which makes this experience more noteworthy. Read more
Written by David Fabian, October 14th, 2016
Investors in closed-end funds have to contend with different risks and analysis criteria than ETF or open-ended mutual funds. Those that have spent any length of time in this space have more than likely learned how important it is to look beyond distribution yield, recent price trend, or the touch of a star fund manager. While these characteristics are important, they can easily be overridden by an exorbitant premium or fundamental catalyst that turns the corner. Read more