Neuberger Berman has NY and CA closed-end funds. These are not MM accounts but it seems like they are tax exempt. The pdf for the NY Intermediate Municipal Fund (published Sep 2005) lists a distribution yield on market price of 5.67% and tax-equivalent yield of 9.93%. Since shares of the fund are publicly traded the return could be reduced by market demand and since it is not a MM account I assume there are no check writing abilities but I also imagine there cannot be an enforced minimum since shares are purchased from other investors and not directly from the fund itself.
Can anyone clarify the tax implications and any other risks? I assume that gains/losses on sales of the shares would be taxed as cap gains/losses while distributions would be tax free.
At today's closing price $10000 would buy 750 shares which would yield $585 tax free in a year (at $0.065/share per month). The price of a share would have to drop 2.61% from its current level before performance was reduced to that of the Vanguard NY fund. On the other hand there is the potential for increases in value.

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interesting article of interest

U.S. tax-free money funds have record inflows[/B
Wed Jan 11, 2006 04:07 PM ET
NEW YORK, Jan 11 (Reuters) - U.S. taxable money market funds had $14.1 billion of inflows in the latest reporting week, while tax-free funds recorded a record $14.96 billion of inflows, the Money Fund Report said on Wednesday.

Taxable money fund yields averaged 3.68 percent in the latest week, up 7 basis points from the prior week, and the highest since June 2001, according to the report published by iMoneyNet Inc. Tax-free yields plunged 33 basis points to 2.47 percent.

The record tax-free weekly inflows were fueled mainly by institutional investors socking away cash in their short-term tax-free accounts, said Pete Crane, managing editor of the Money Fund Report.

The combined $29 billion of weekly inflows for all money funds was close to the record set in June of last year, when all funds took in $30 billion in one week, Crane said.

Strong inflows were mainly driven by seasonal factors at the start of a new year, when investors park bonuses and other one-time payments in a liquid instrument, Crane said.

Tax-free yields likely declined because there was a large amount of money chasing a limited supply of securities, Crane added. The average yield is likely to pop back up in coming weeks, he said.

Total assets of tax-free money funds reached a record high of $352 billion in the latest week, the report said. Taxable money fund assets totaled nearly $1.68 trillion.

© Reuters 2006. All Rights Reserved.

Are the VRDN rates published anywhere online? Also, does anyone here buy muni paper?

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what happened to all of dolmar's posts?

I agree it is a terrible shame to see Dolmar remove his posts. His depth of insight regarding short-term investments was extraordinarily invaluable. Personally, by his well researched, keenly reasoned replies, I gained invaluable inisghts into short-term investments.

I hope Dolmar shares his reasons for removing his posts...I think it will make some backward members here (who unfortunately have a means of eroding the community feeling here) hang their cyber-heads in shame.