Muni bonds in the last three weeks have fallen out of bed. Normally I disdain these investments but we are nibbling at multiple Invesco Van Kampen funds yielding an amazing 8%.
Symbols include VMO,VGM, VIM, VKI, and VCV. We expect to not only pick up the units dividend on 12-12, we expect to make some short term capital gains from these very depressed levels.  The long bond has fallen dramatically on prospects of economic improvement.  This may be the correct interpretation but we think the muni market has taken a disproportionate hit.  It’s of course not immune from rising rates but we are short term traders and expect to pick up the dividends on the 12th and trade out shortly afterward for capital gains as well.