Discover the state of the municipal bond market post-2022 interest rate surge! Munis had their worst year since 1981, with a -8.5% return. Yields doubled from 1.03% to 2.63%, causing record outflows of $122 billion. Join us with muni bond expert Robert DiMella, Co-Head of MacKay Municipal Managers, as he shares insights on market recovery and tax-free opportunities. What are the opportunities and risks in the tax-free market now?
WEALTHTRACK Episode #2010 broadcast on September 01, 2023
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ROBERT DIMELLA
- Co-Head, MacKay Municipal Managers
ACTION POINT
HOLD ENOUGH CASH AND TREASURY BILLS TO SEE YOU THROUGH MARKET DECLINES
Warren Buffett, Chairman of Berkshire Hathaway, has long held billions in cash, mostly Treasury bills, on Berkshire’s balance sheet.
- End of the second quarter, cash & equivalents totaled around $147bn
- Includes more than $120bn in short-term Treasuries
- Buffett on U.S. Treasuries: “There are some things people shouldn’t worry about…This is one.”
Source: Financial Times, “Berkshire Hathaway’s $147bn cash pile approaches all-time high.” 8/7/23
ONE INVESTMENT
FINANCING LONG-TERM INFRASTRUCTURE
- Consider taxable municipal bonds
- Financing long-term infrastructure and services
- The taxable muni market is more liquid & varied than before
FROM THE ARCHIVES
Robert DiMella from the WEALTHTRACK Archives:
WEB EXTRA
RECHARGING BATTERIES
Bob DiMella, a leading expert on tax-free municipal income, explains why he recently moved to California, the state with the highest individual income tax rate in the country.
