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Investing/Strategies / Retirement Investing
|Subject: Re: OT: a bit - where to put liquid savings.||Date: 3/9/2005 5:46 PM|
|Author: damcrae||Number: 45032 of 76418|
While I also use ING and 90-180 day laddered CDs for significant $$$, I also have significant funds in a closed end muni bond fund, Van Kampen Muni Trust - VKQ. Like most CEFs, VKQ is leveraged with $300 mil in preferred shares. Total VKQ assets are $903 mil. VKQ assets consists of 72% AAA RATED muni holdings plus 11% AA. BBB and below assets are 12.5% Current market yield is 6.33%, 8.79 Taxable Equivalent.
The current market price is $14.93. (Since Sept 03, it has traded within a fairly flat range of 13.23 - 15.74.) As a CEF, the key is that it is currently trading at a 10.5% DISCOUNT to its NAV. I like the fact that with a CEF, I have the abiliy to buy or sell at any time during the trading day.
You may have noted that recently some talking heads including Ben Stein have recently talked about their CEF holdings.
You can check out VKQ (and hundreds of other CEFs) at www.etfconnect.com. (As alway accomplish your own DD before making any investment)
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