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Alliancebernstein Income Fund Message Board

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    • This link is to a very long article on muni bonds. Towards the end is a section on muni bond CEFs where the interviewee predicts muni bond CEFs may be in for a 20 to 30% drop in price. Don't know if I agree with him but its worth a read. Also says the fees charged to manage these CEFs is excessive for the amount of actual work required.

    • I was amused to see that even the
      Swiss pigs are now lining up for
      our welfare dollars, their legendary
      expertise having somehow failed to
      prevail under free market conditions.

      The interesting Mr. Satyajit Das
      has a funny piece on financial
      industry expertise @ Minyanville
      now, called "Help Wanted: Rogue

      Sorry that it won't link to this
      wretched Yahoo service.

    • This is part of the problem.
      Do you think they would have
      done a long term financing at

      In any case, you can find
      literate accounts of the
      incident through a Google
      search. Read about it last
      night, myself, but didn't
      bookmark the reference.

      Whether it's a glitch or
      something recurrent is the
      real question, but the reset
      cycle is very short for these
      particular instruments. In
      this case, it was 7 days if
      memory serves.

      Hey, if the Port Authority
      wanted to sell long term paper
      @ 20% per annum, the line of
      buyers would stretch to Princeton.
      We would certainly be in it.

      Again, I'm not talking about
      the cefs here but about the
      normative experience on Municipal
      credits--the actuarial basis of
      the Berkshire offer. If the
      nervous activity of a small
      minority of cef shareholders
      and consequent volatility is
      too much, then I'd sure think
      about a good closed end, like

      You can check investor opinion
      on the muni bonds themselves
      daily by looking at the spreads
      to comparable Treasuries at Yahoo
      or Bloomberg.

    • pls inform Chuck Schumer. He just referenced the 20% Port Authority rate in Banking Commitee testimony as if it were set for 10 years rather than a glitch in the 7 day auction cycle.

    • Going for the greedy Full Monty in one shot. Of course when you ask for the moon strategically you have a real bottom line that you actually wanted and hoped to get. FHA guaranteed refinancing for all sub-primers seems unlikely to be part of that final bottom line, but who knows?

    • Judging from the more comprehensive
      articles on the subject, this is more
      craziness from the banks. More
      of what the perceptive Mr. Das calls
      "the nuclear option" and I call
      plain old "extortion." The failed
      auctions I read about all took place
      before Berkshire move on MBIAs
      municipal underwriting, which
      probably should say something to
      buyers but may not.

      (For those who don't know,
      these auction rate securities,
      like the PA of New York tranch,
      are essentially callable after
      7 days--so the "20%" APR amounts
      to a rounding error in the context
      of their financings.)

    • and on the home front----

      go out to 2-3 yrs. for long view.

    • What the Fed is trying to do is reallocate money into hands that are willing to lend it via the TAF, rather than having it wind up in the hands of those currently inclined to hoard it like C and GS.

      As far as trends are concerned, when auction rate securities for the Port Authority reset from 4.3% to 20% in the weekly auction, I ain't buying it. Or perhaps I am if it continues! Talk about bizarre, out of whack, whatever.

    • You know, whatever the Fed is
      doing, it isn't "printing money."
      This is plain to anyone who follows
      the supply stats.

      I also saw a Financial Times article,
      obviously a pickup from the WSJ
      piece, referenced by the Captain, that makes a "trend" out of a
      literal handful of failed muni
      auctions, among hundreds.

      I leave it to you to decide how
      much attention this material merits;
      but I will point out that asset
      diversification and value are
      important sources of safety under
      such conditions and that, if half
      of what these people are saying is
      true, "cash" isn't necessarily
      a safe haven either.

      You shouldn't construe this as
      investment advice. As usual, I've
      learned what I can about the situation and drawn my own
      conclusions, which may or may
      not be accurate.

      BTW, I saw an article tonight
      in which the monoline insurers
      are now blaming the ratings

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