It turns out that many so-called single state municipal bond mutual funds actually put a bit, or more than a bit, of their assets into debt issued by Puerto Rico. Of course, single-state muni funds are called single-state because of their target shareholders (i.e. the people from their home state can get income from them tax-free) and not their investments (which simply need to generate that tax-free income for the investors).
Tom Lauricella takes note
of this trend in the Wall Street Journal's "Journal Report"
today. He cites the Franklin Oregon Tax-Free IncomeFund
] in particular (12.2 percent in Puerto Rican debt as of September 30). Morningstar
fixed-income research director Eric Jacobsen
] muni bond fund PM Robert Amadeo
, Franklin muni bond group co-director Rafael Costas
, and Oppenheimer Rochester Virginia Municipal Fund
] PM Daniel Loughran
all weighed in for the article.
Neil Anderson, Managing Editor
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