Comments
yourfanat wrote: I am using another tool for Oracle developers - dbForge Studio for Oracle. This IDE has lots of usefull features, among them: oracle designer, code competion and formatter, query builder, debugger, profiler, erxport/import, reports and many others. The latest version supports Oracle 12C. More information here.
Cloud Expo on Google News
SYS-CON.TV
Cloud Expo & Virtualization 2009 East
PLATINUM SPONSORS:
IBM
Smarter Business Solutions Through Dynamic Infrastructure
IBM
Smarter Insights: How the CIO Becomes a Hero Again
Microsoft
Windows Azure
GOLD SPONSORS:
Appsense
Why VDI?
CA
Maximizing the Business Value of Virtualization in Enterprise and Cloud Computing Environments
ExactTarget
Messaging in the Cloud - Email, SMS and Voice
Freedom OSS
Stairway to the Cloud
Sun
Sun's Incubation Platform: Helping Startups Serve the Enterprise
POWER PANELS:
Cloud Computing & Enterprise IT: Cost & Operational Benefits
How and Why is a Flexible IT Infrastructure the Key To the Future?
Click For 2008 West
Event Webcasts
Winans Investments reports: Forget municipal bonds - the best bonds to buy in today's volatile, high tax world are corporate issues!

NOVATO, Calif., Dec. 21, 2012 /PRNewswire/ -- Despite the scary headlines, investments continue to climb an economic wall of worry. However, the biggest financial "head scratcher," is why average investors are still willing to pay such a high price for the troubled waters of municipal bonds in spite of the better tax advantaged yields offered in mid-grade, corporate bonds.

"Even though Stockton and San Bernardino's fiscal problems are still news, investors are chasing low yielding California municipal bonds with maturities as far out as 2033!" says money manager Ken Winans.

These investors are willing to ignore glaring issues in owning municipal bonds today:

  1. The financial mismanagement of many state and local governments likely means future bond defaults.
  2. Yields on U.S. municipal bonds are at their lowest level in 49 years. History teaches us that overpaying for long-term bonds in a low interest rate environment leads to huge hits in investment values during interest rate advances in the future. In fact, a 5-year municipal bond, bear market had a huge price decline of 57% following 1963's record high!
  3. Many tax-free bonds are in fact taxable, because these issues can be subject to the alternative minimum tax, which targets most high-income earners.
  4. Unlike most other types of investments, transaction costs and investment management fees for most municipal bonds are not tax deductible.

What should tax-conscious bond investors do?

  1. Diversify into corporate bonds: Not all municipal and corporate bonds are the same, so shop for the best tax equivalent yield. Currently, 5-year mid-grade corporates are yielding over 6.5%!
  2. Shorter maturities on new investments: Investors should avoid new bond purchases with maturities exceeding 10 years. The investment volatility should be significantly less during the next bear market in bonds.
  3. Amortize premiums paid on bonds: By amortizing the premium paid on bonds above maturity value, the tax equivalent yield-to-maturity favors corporate bonds.
  4. Track the bond markets trends: If the Bond Buyer G.O. 20-Year Municipal Bond Price Index crosses below its 100-week moving average, a new price downtrend has begun, so be cautious on new municipal bond purchases.

Caveat Emptor: Municipal bonds are popular with the investment industry. Not because they necessarily offer better returns to their clients, but because they can make more compensation on these investment products!

SOURCE Winans Investments

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Cloud Developer Stories
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serv...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies ...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William ...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an over...
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download o...
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
Click to Add our RSS Feeds to the Service of Your Choice:
Google Reader or Homepage Add to My Yahoo! Subscribe with Bloglines Subscribe in NewsGator Online
myFeedster Add to My AOL Subscribe in Rojo Add 'Hugg' to Newsburst from CNET News.com Kinja Digest View Additional SYS-CON Feeds
Publish Your Article! Please send it to editorial(at)sys-con.com!

Advertise on this site! Contact advertising(at)sys-con.com! 201 802-3021



SYS-CON Featured Whitepapers
ADS BY GOOGLE