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Tuesday, October 28, 2008

Muni Delever

We detailed a few weeks back why Muni's were a screaming buy. Here's the proof.

Hedge funds have been forced to unwind a tremendous portion of their Municipal Bond positions, creating a world in which some Muni's which are backed by Treasuries, present a BEFORE tax yield greater than Treasuries (the chart above shows the entire Lehman Brothers index).

Source: Lehman