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LIGHTNING ROUND: Opportunities in munis despite bankruptcies

Thursday, July 12, 2012 - 01:53

July 12 - Even after San Bernadino, Califorina declared bankruptcy, Cumberland Advisors' David Kotok says there are opportunities in revenue generating muni bonds, such as the NJ Turnpike.

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Sick because talk of probability advisors to wipe it out for a lightning round on the yeah. Mark today at San Bernardino California another thing that's bankrupt there. -- we seeing more default -- bankruptcy I think show. The municipalities to get themselves to expanded Stockton California Diego California. San Bernardino. Eventually have to confront the fact they cannot pay the bills -- seeing it. Doesn't mean old Muni market -- Doesn't mean Meredith -- call it's maybe a little that are now. That's a big discussion and that's gonna heat up again I'm on the other side it Whitney I was when she did it. I think she provided one of the great opportunity to apply municipal bonds if you do the homework we're in another way right now. So you buying bonds despite the headlines I'll be sure but no the credit understand. The -- tax free yield on it's a 150 basis points higher. And that taxable yield on the long treasuries here I knew anything about it default it cheap to avoid California. Well I would be careful of credit in house -- But the whole state is -- which gives you opportunities. The same thing it would. States like Illinois although I would avoid the state of Illinois right now actually think that states the -- of the fifty print what you like -- Right now. -- great revenue bonds and New Jersey Turnpike. They're not gonna go bankrupt. If you think so take your card actually -- all -- we are writing and so. The fact if you put credits in revenue bonds used to work on credit and owns them because -- It cuts not government advises that -- I've Rhonda schaffler that's -- Ryder.

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LIGHTNING ROUND: Opportunities in munis despite bankruptcies

Thursday, July 12, 2012 - 01:53