Long-Duration Munis Very Attractive: Schwab's Kathy Jones

The video discusses the growing interest in fixed income products as yields become more attractive. It introduces the concept of replacing TINA (There Is No Alternative) with TARA (There Are Reasonable Alternatives) to equities. The speaker highlights the potential to build a solid bond portfolio with high-quality bonds offering yields around 5%. Treasuries and investment-grade corporates are recommended as base holdings. Municipal bonds are also discussed for their attractive after-tax yields, especially for those in high tax brackets. The video concludes with a discussion on future yield trends, predicting that 10-year treasuries may not exceed 4% again.

What does 'TARA' stand for in the context of investment alternatives?

• The Alternative Risk Assessment

• There Are Reasonable Alternatives

• There Are Risky Alternatives

• The Alternative Revenue Approach

What is a key benefit of investment-grade corporate bonds?

• High risk and high return

• Good balance sheets and cash flow

• Low liquidity

• Unpredictable interest rates

Why are municipal bonds particularly attractive for high tax bracket individuals?

• They have high default rates

• They require high initial investment

• They are short-term investments

• They offer tax-free income

What is the expected yield range for 10-year treasuries by the end of the year?

• Above 5%

• Below 2%

• Below 3%

• Around 3 1/4%

What has changed in the investment landscape regarding risk and yield?

• Higher risk is now required for higher yield

• Lower risk can now achieve reasonable yield

• Risk and yield are unrelated

• Risk is no longer a factor in investments