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Re: mouton29 post# 113008

Sunday, 01/23/2011 1:23:59 AM

Sunday, January 23, 2011 1:23:59 AM

Post# of 257580

Irrelevant to the point, which is that it is not rational for an instrument collateralized by Treasuries to have a yield materially greater than Treasuries, since the credit risk on the municipal is not greater than the credit risk on the Treasuries, especially since the municipal instrument is tax-exempt while the Treasuries are not.




I understand the point of the article. I'm making my own point about this anomaly.

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