Скачать или смотреть Avoiding Boondoggle Investments (w/ Dean Myerow) | Expert View | Real Vision™

Bond portfolio manager Dean Myerow has spent his 25-year finance career in “muniland”— trading and investing in municipal securities. In this in-depth interview, Dean explores the advantages of investing in the muni bond space, such as principal protection and a regular income stream, and maps out potential risks to avoid, such as states with large structural deficits and bond issuances fueled by ill-conceived political boondoggles.

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Avoiding Boondoggle Investments (w/ Dean Myerow) | Expert View | Real Vision™
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Transcript:
Over 25 years, I've seen stupid-ass deals, stupid. I mean, muni bond deals where some bond developer or banker decides that it's a really good idea to go down to a southern state -- I won't pick on Alabama, but they ended up -- somebody proposed a great idea a bunch of years ago to take dead chickens and they were going to raise a bunch of millions of dollars through a public offering… There’s tons of bad stuff that gets filtered out in the muni bond market, that never sees the light of day, but there's always you know the boondoggle that you remember, the stuff that either you invested in it or it happily avoided it. Fortunately today we try to avoid as many of those as we can, but where you're turning dead chickens into dog food and you're requiring rural farmers to go ahead and rent a freezer at the back of their farm to collect the dead chickens through some government entity in Alabama and the government entity is picking up the dead chickens and going to turn them into dog food and the revenue from the dog food is going to repay the bonds. You know what? That's on even a slow-moving train wreck, that's a disaster. One of the bond deals that absolutely tickles me today as being the worst muni bond deal that I've ever seen -- and it's interesting, because I hear about Edinburg, Texas. I see it in the news because it's right on the border of Mexico, and I'm not going to get into politics, but what I find really fascinating is a bunch of knuckleheads in the muni bond business probably a decade or two. I can't remember, but the basic premise was that the folks that were seeking freedom coming across the border from Mexico, the muni bond deal was premised on the idea that the folks coming across the border were going to take a water ride at the water park and the revenues from the water park were going to repay some type of industrial development revenue bond in Edinburg, Texas. And obviously the folks coming across the border in Mexico, they're not coming to take a water park ride. They're going on to other things. Don't invest in what you don't understand. Don't invest in novel concepts. We, as portfolio managers, are going with the tried and true.