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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (78741)5/5/2008 3:56:23 PM
From: KyrosL  Respond to of 116555
 
I think it's the failure of the Auction Rate Securities market. Municipalities are trying to replace ARS with long term munis, and in the meantime go to the short term market for immediate cash. So there is lots of supply of short term munis, which pushes up their rates. These rates are still much better than the penalty rates on failed ARS auctions.



To: Crimson Ghost who wrote (78741)5/5/2008 4:47:53 PM
From: Perspective  Read Replies (1) | Respond to of 116555
 
Please share which ones you're seeing. I could use a tax-free parking place for <1year.

`BC



To: Crimson Ghost who wrote (78741)5/5/2008 5:49:40 PM
From: Archie Meeties  Respond to of 116555
 
Forced liquidation during the bond crisis, failure of auction rate market - and that came from brokers increasing their margin requirements.

If you look at the holdings for the tax free mf, most are in short term state and local bonds.

This was the peak.
Message 24358681

The replies are pretty informative as well.


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