Biotech Values

[biomaven0]

own only short- and medium-term individual munis that you plan to hold until maturity

A high-end broker I know (8-figure type accounts) buys long-dated highest quality munis and shorts an equivalent amount of zero coupon treasuries for his clients. (You have to be a little careful from a tax perspective when doing this). There's about a 100 to 150 basis points spread before the effect of taxes - much more after tax of course. You could get temporarily hurt in a flight-to-safety panic, but otherwise this is an interesting low-risk strategy with nice cash flow to boot. (Fidelity unfortunately won't let you short zero coupon bonds for some reason).

The other interesting development from a muni investing perspective is the push to end the issuance of new tax-exempt bonds and replace them with an interest rate subsidy. It would be better for the Treasury and would be great for existing munis.

Peter