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Byline: Claire Mencke
Investor's Business Daily
California muni bonds and related mutual funds have been high on performance lists the past two months.
The state's booming, diverse economy boosted incomes and savings, sparking demand for these tax-exempt investments.
Meanwhile, the state, like many others, is running a budget surplus. That has eliminated much of the need to issue new public bonds.
"There's been very little new supply this year, especially of new b
onds selling at or near par value," said Robert Bigelow. He runs $180 million HighMark California Intermediate Tax-Free Bond Fund. It returned 8.8% in 2000 and 1.96% this year through Tuesday.