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I found holding individual Munis to be a PITA. Buying at a good price is hard, selling at a good price takes a miracle. Also they can get called for other reasons beside the interest rate that can be disadvantageous to the holder. I have done better with closed-end leveraged munis funds - NMZ NAD MHD. They pay 6 or 7%
I constructed my bond floor out of mainly muni bond funds/etfs: BYM, IQI, NMZ, MYD, & LEO. Just over 10% (3-4 yrs of living expenses) of my portfolio. DRIP on. If I need $s I can sell at anytime.
I hold bond ETFs throughout the entire rate cycle as part of my overall investment strategy. As you can imagine, it hasn't worked out very well, but no massive losses or fund liquidations. So, this is a bad strategy, but it does provide some security and dividends. I don't hold individual bonds as an ETF allows me to spread the risk across many companies or countries/municipalities. US Treasuries are the sole exception as a US government default is unlikely and perhaps impossible. I also hold bank CDs. I hold bond ETFs like PZA LQD NMZ PICB HYG
For comparison to other muni funds, I find cefconnect to be quite helpful. https://www.cefconnect.com/fund/NDMO NMZ has a duration of closer to 30 years. Looking at the yield curve for 20 year vs 30 year bonds, this yield difference seems to fit alongside it. NEA is also slightly longer duration than NDMO. Call exposure also can weight on pricing some funds, but even CEFconnect doesn't seem to really provide enough information to be able to judge that effectively. NDMO has lower leverage (26.81 effective) vs just over 38% for the other two. That leverage really hurts when the curve is inverted. I think the difference in distribution rates could be related to that, but that RoC is not what I would want to see ideally. If you are in certain tax brackets then I am quite fond of muni's. NDMO should do quite well provided we get all the rate cuts that it obviously is beginning to price in. It looks a touch expensive, in my opinion, but I have no problem with it in general. Leveraged muni funds need the curve to un-invert in order to really shine. Looking at the share price though, it looks like a week ago would have been a much better time to buy. I wonder how much of this price movement is just temporary exuberance.
Look into closed end funds like PML and NMZ
Check out closed end funds muni stocks like NMZ and PML - no fed / state income tax with 6-7% dividends
24% NMZ 18% T 14% AMZN 12% PARA 10% TAP 8% KHC 6% QSR 6% INTC I'm still young so I have plenty of time longterm but I decided to jump into Muni bonds and several of these other safer choices in anticipation for any sort of recession. I don't know if it's still all that great of an investment and I've definitely taken a loss on it over the past couple months but I can't quite stomach letting my PARA go. Intel was somewhat of a dip buy that I'm hoping works out long term but I'll have to see. Any advice is greatly appreciated since I'm still relatively new to investing
Hmm when I did a backtest of the nuveen NMZ I thought I was shown high 6% CAGR. Perhaps I was mistaken.
Buy 1M worth of NMZ and start collecting that sweet 4700 monthly dividend
HYD MYI NMZ Muni etfs. Use for stability in your non Roth account, as you pay no taxes on returns
My balance is close to 2 mil. I am up 205k for the year. Unrealized gains. But I live off the dividends on NVG, NMZ, NHCO, and NZF. All nuveen bonds. Tax free.
If you like high yield muni etfs, check out NMZ instead of HYD.
Im afking NMZ rn mate idk what to tell you apart from Jagex wish they made roblox instead of OSRS lol
Completely agree with the sentiment. Though while I'm pretty much all in on equities right now, I do hold some muni bond CEFs in lieu of cash/bonds. NMZ is a 5% tax free yield and has great capital appreciation for me (not more than the market tho of course). However, selling it for NAD since NMZ is now selling at a premium because of the promise of stimulus funds to help prop up it's riskier exposure to some of Illinois muni debt. NAD is 4.6% yield, still selling at a 7% discount, and has extremely high quality debt for the yield. So yeah, not going to beat the market either but also not a terrible place to park some cash.