Piper Jaffray Says Muni Buyers Should Shift Toward Longer Bonds
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Brett Adlard (Piper Jaffray Cos)
Justin H Hoogendoorn (Piper Jaffray Cos)
Topics
First Word Credit US
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283
(Bloomberg) -- Municipal-bond investors should shift out of short-term debt toward securities that come due in 10 to 15 years, Piper Jaffray Cos. analysts Justin Hoogendoorn and Brett Adlard said in a research report.
- “We recommend exiting rich 5yr and in paper and moving further out the curve. Investors should focus in the 10yr-15yr area for improved yield, roll and protection from a hawkish Fed,” the analysts write.
- “Investors can pick up double the yield and improve credit quality by doing this extension trade.”
- AA rated 5-year municipal revenue bonds yield 1.48 percent, compared with 2.75 percent for similar grade 15-year securities, according to Bloomberg’s indexes
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Brett Adlard (Piper Jaffray Cos)
Justin H Hoogendoorn (Piper Jaffray Cos)
Topics
First Word Credit US
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283