{"id":5461,"date":"2006-12-27T00:00:00","date_gmt":"2006-12-27T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"capitalize-on-hedgies-demand-for-muni-bonds","status":"publish","type":"post","link":"https:\/\/staging.hedgeco.net\/news\/12\/2006\/capitalize-on-hedgies-demand-for-muni-bonds.html","title":{"rendered":"Capitalize on Hedgies Demand for Muni Bonds"},"content":{"rendered":"<p>Street.Com &#8211; <span class=\"default\">Demand for the dullest of assets &#8212; yes, that&#8217;s right, municipal bonds &#8212; has gotten a recent boost from hedge funds.<\/span><\/p>\n<p>  <span class=\"default\">These private investment partnerships are using muni bonds to juice their investment returns, which aren&#8217;t as stellar as they were a few years ago. But hedge funds aren&#8217;t just  buying the bonds and collecting interest.<\/span><\/p>\n<p>  <span class=\"default\">Rather, they are employing various arbitrage strategies to profit from the difference between the yields paid by longer-dated muni bonds and other, shorter-dated securities.  One such strategy involves using the bonds as collateral in trusts that issue variable-rate notes.<\/span><\/p>\n<p>  <span class=\"default\">Demand from these kinds of programs has boosted prices on municipal debt and enabled this asset class, which is usually associated with predictable, if unexciting, tax-free  income, to outperform both U.S. Treasuries and corporate bonds for the past three years, according to data from <em>Bloomberg<\/em>.<\/span><\/p>\n<p><a href=\"http:\/\/www.thestreet.com\/funds\/fundmorning\/_msnh\/10329510.html?cm_ven=MSNH&amp;cm_cat=FREE&amp;cm_ite=NA\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Street.Com &#8211; Demand for the dullest of assets &#8212; yes, that&#8217;s right, municipal bonds &#8212; has gotten a recent boost from hedge funds. These private investment partnerships are using muni bonds to juice their investment returns, which aren&#8217;t as stellar [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5461","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5461"}],"version-history":[{"count":0,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5461\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}