Sun, Jul 13, 2014, 5:32 PM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Denbury Resources Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • soscorp soscorp Jan 7, 2004 9:31 AM Flag

    Off Topic

    Found it, MuniVest Fund. Should I be concerned that so many city & state budgets are currently red? How would you project this fund will preform in an increasing interest rate environment?


    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • MVF averages AA bonds. Morning star has 4 stars mty 16.6 years duration 7.32 selling at a discount to actual value -8.29% Will the price go down as rates go up what do you care you are hedged on the other side?

    • I like closed end muni bond funds and hold several of them, though not MVF. But there are a number of things to keep in mind. One, they generate a high yield because they invest in long-term bonds, and with interest rates set to rise, this involves a risk. Second, the risk is compounded by their leverage. I note MVF is 32% leveraged. That means they're borrowing short and investing long. Finally, you should inquire into how much of their "tax-exempt" holdings are subject to AMT. I suspect that a lot of investors are going to meet up with the AMT for the first time this year, and they are not going to like what they see.

17.51-0.26(-1.46%)Jul 11 4:03 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.