“The first quarter of 2014 turned out to be surprisingly good for tax-exempts,” Citigroup’s Mikhail Foux and Vikram Rai said in the article. “At current levels tax-exempts do not have much upside, and rates are expected to start moving higher.”
The Citigroup’s analyst, though, believe that it is “time to take profits” because returns are “likely to be much less impressive” in 2014.
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Full disclosure: Tom Lydon’s clients own shares of LQD.