Market Knowledge in Managed Municipal Bond Portfolios

Authors

  • Sandeep Singh Department of Business Administration and Economics, State University of New York, College at Brockport, Brockport, NY 14420
  • William H. Dresnack Department of Business Administration and Economics, State University of New York, College at Brockport, Brockport, NY 14420

DOI:

https://doi.org/10.1016/S1057-0810(97)90012-3

Abstract

In this paper, we analyze the investment performance of two types of open-end munici- pal bond mutual finds: first, mutual funds that have the objective of generating income free from federal income taxes; second, funds that have the objective of generating income free from not only federal but also a particular state’s income taxes. Our results suggest the following: first, municipal bond fund monthly returns either mirror or lag the Lehman Brothers Municipal Bond Index returns on a risk-adjusted basis; second, when state taxes are significant, such as in California and New York, the investor benefits from investing in state-specific municipal bondfunds.

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Published

1997-09-30

How to Cite

Singh, S., & Dresnack, W. H. (1997). Market Knowledge in Managed Municipal Bond Portfolios. Financial Services Review, 6(3), 185–196. https://doi.org/10.1016/S1057-0810(97)90012-3

Issue

Vol. 6 No. 3 (1997): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1997 JAI Press Inc.

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