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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: Sr K who wrote (80993)7/2/2008 11:11:46 PM
From: Jim McMannis   of 116555
 
You said "Tax rates" not "taxable rates". "Taxable rates"
(assuming you mean "interest rates on taxable bonds") are a different angle.

Message 24723354

If tax rates go up the spread between munis and taxable bonds will expand. If interest rates rates on taxables stay the same the muni rates will drop and the value of the muni bond will increase.
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