Municipal bonds are an “outrageous bargain” in the wake of Detroit’s bankruptcy filing, according to David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer.
As the CHART OF THE DAY shows, the highest-rated notes and bonds of state and local governments yield more than Treasuries of similar maturity for 1 year through 30 years without having to adjust for tax benefits. The data was compiled by Municipal Market Advisors, an independent research firm, and Bloomberg.
