No. of Recommendations: 3
Now, here’s a fun group to dig into, tobacco munis. Probably, there's more than the twenty-two I've found this morning so far, but I was screening restricitvely, asking for a YTM of 6% or better.

-Ratings range from Aa3/AA+ to NR/NR
-Prices (with commish) range from 2.196 to 99.200.
-Coupons range from 0% to 7.309%.
-Nominal YTMs range from 6.14% to 10.87%. (Tax-equivalent yields will be higher, obviously)

The reason I mention this group is that yet another unwelcomed call was dumped into my lap, and my position in such a bond, someone’s 5.6 of ’35 that I had picked up a couple years back at 88.27 for a nominal YTM of 6.46%, will get bumped up by the call to 8.03% nominal and 10.03% tax-equivalent, which isn’t bad for a --/AAA-rated issue, then or now.

So, I made a fat return. But, meanwhile, I now have the problem of having to put more cash back to work in a market that has become increasingly difficult. Yeah, I know, “No rest for the weary, and the righteous don’t need any”, as my Father used to tease, and the fact of persistent, numerous calls means that issuers are taking advantage of the Fed’s gift of free money to reinforce their balance sheets, which, ultimately, is A Good Thing. But, often times, the status quo is soooo comfortable that change isn’t welcomed.

Standard disclaimers: There’s nothing safe about any of this stuff, as the fat yields themselves warn. OTOH, they might be attractive if their risks can be managed. That’s the key to success in bond-investing. If you don’t take on enough risk, inflation is going to kill you. If you take on more risk than you can manage, your own greed is going to kill you. “Balance, Daniel-san. Karate (or investing) is all about balance”, as Mr. Miyagi would say. So, do your due-diligence and size your positions properly.

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