Despite scary headlines of financial problems in places like Puerto Rico, Illinois and Detroit, the municipal bond market is a safe market for investors, according to the authors of a new book on the municipal bond market. ‘Adventures in Muniland’ was authored by the team at Cumberland Advisors, including Michael Comes, Vice President of Research and Porfolio Manager. ‘What we try to do in the book is really break it down, and look at the market from all different angles, and see how investors are best served in playing the market, ‘ said Comes, who added that headlines about defaults and municipal bankrupcties actually can be a positive for investors. ‘Because the market tends to react to issues like this in sort of a headline risk framework where everyone gets scared and sells, it can be an opportunity,’ he explained. One of Comes’ co-authors sees big opportunities in the market today. ‘That is the one space that hasn’t cured from the financial crisis for a variety of reasons,’ said David Kotok, Chairman and Chief Investment Officer at Cumberland. ‘Munis are cheap, therefore, and all it takes is a little good research and work, and you can pick ones and they will pay you a tax-free return and that’s super.’ Comes and Kotok spoke at Camp Kotok, an annual gathering of economists and money managers held in Maine.
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