There are High Yield Municipal Funds, and Then There is Boston's Colonial Outfit-- CXE
Colonial High Income Municipal Trust, or CXE is a closed end municipal bond fund that is currently kicking off over 10%, which is looking fairly TGTBT*. That's 10 percent-- BEFORE TAXES, making the tax equivalent yield, well... pretty absurd, like one of Bill Gate's giant dividends for the faithful. Except, CXE pays monthly, for you fans of compounding interest.
It's trading at a -2% discount to it's Net Asset Value (NAV). It's leverage is 37.16 right now, which offers additional bang for the buck, but not more than seems right.
It's summary is as follows:
You'll find a fact sheet, as of November 06, about the fund in slow acting .pdf file form on the website of its manager (Columbia Management, a unit of Bank of America), here
It shows an pretty even breakdown of AAA (22%), BBB (23%) and Non-rated paper (33%), which may be a little less funky than you'd think for a fund yielding so much. It's holdings are about 80 percent uninsured. And duration looks to be split down the middle. .However, it's holdings are not on the fact sheet.
It's been around since 1989, is managed by CFA, Maureen Newman; and has some major institutional holders of small bits and pieces.
We're still trying to fully understand why CXE is offering its free lunch, but the technicals appear attractive right now, as the Dow rallies, with Goldman pumping the Dow transports, perhaps in an effort to help "show" follow-through. CXE's MACD, which is a measure of moving averages for various time frames and how they meet and diverge, indicates the begining of a bullshit trend.
So, if you are taking some profits off the table from last year for the tax advantages of waiting until after the 1st, CXE could just be a good place to part the cash until something else comes along. But stay tuned (did we mention that we are still trying to find CXE's holdings listed somewhere online).
*TGTBT is short for "To Good To Be True", and is a service mark of Theyieldhoe.com.
It's trading at a -2% discount to it's Net Asset Value (NAV). It's leverage is 37.16 right now, which offers additional bang for the buck, but not more than seems right.
It's summary is as follows:
- Colonial High Income Municipal Trust is a diversified, closed-end, management investment company. Co.'s investment goal is to provide high current income, generally exempt from federal income taxes. Co.'s secondary investment goal is to seek total return. As of Nov 30 2003, Co. had total assets of $327,187,015 and an investment portfolio of $320,292,808.
You'll find a fact sheet, as of November 06, about the fund in slow acting .pdf file form on the website of its manager (Columbia Management, a unit of Bank of America), here
It shows an pretty even breakdown of AAA (22%), BBB (23%) and Non-rated paper (33%), which may be a little less funky than you'd think for a fund yielding so much. It's holdings are about 80 percent uninsured. And duration looks to be split down the middle. .However, it's holdings are not on the fact sheet.
It's been around since 1989, is managed by CFA, Maureen Newman; and has some major institutional holders of small bits and pieces.
We're still trying to fully understand why CXE is offering its free lunch, but the technicals appear attractive right now, as the Dow rallies, with Goldman pumping the Dow transports, perhaps in an effort to help "show" follow-through. CXE's MACD, which is a measure of moving averages for various time frames and how they meet and diverge, indicates the begining of a bullshit trend.
So, if you are taking some profits off the table from last year for the tax advantages of waiting until after the 1st, CXE could just be a good place to part the cash until something else comes along. But stay tuned (did we mention that we are still trying to find CXE's holdings listed somewhere online).
*TGTBT is short for "To Good To Be True", and is a service mark of Theyieldhoe.com.
Labels: bonds, high yield investment, municipals, stock
posted by TheYieldHoe at
9:15 PM
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