Another opportunity to buy discounted MUNIS

If you haven't heard MUNIS, you should. It is the nickname for municipal bond funds. Municipal bonds are debt securities issued by a state, municipality, county, or special purpose district (public schools, airports, etc.) to finance capital expenditures. They are exempt from federal tax, and are generally exempt from state tax for residents of the state in which they are issued. In other words, MUNIS are a popular fixed-income investment for people in a high income tax bracket due to its free tax benefit. The best time to buy MUNIS is when it is traded below its Net Asset Value (NAV). Right now, many good MUNIS are traded with a significant discount against their NAVs. If you buy them now, you are not only enjoying the high yield which is tax-free, you will likely also enjoy some good capital gain when they return to their NAV or even higher. As you know, your income tax is going higher and higher and investigators are becoming more and more interested in those securities which can yield tax-free income. One such MUNIS, Invesco Insured Municipal Income Trust (IIM) is trading around 7-8% discount from its NAV. It pays 6% dividend. In other words; it is almost equivalent to a 9% yield if the dividend is taxable, for those who have to pay a high tax rate. I think IIM is a good buy at the current price.