Replies to post #120363 on Biotech Values

[retired_actuary]

Interesting idea. The pretax spread seems a bit optimistic at the moment. One can mimic the effect of shorting treasury zeros with interest rate swaps, though that introduces some new concerns.

Joe

[DewDiligence]

No thanks! I want to keep things as simple as possible with the fixed-income portion of my portfolio so I can preserve brainpower for the equity portion :- )

[zipjet]

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.

But if I follow this, it would be bad for the issuing states. Right? So why should they do it (unless forced)? And if NOT forced it seems the market forces would be encouraging states to issue muni's.

ij