Two Major League Baseball teams from New York, mainly the Mets and the Yankees have sold tax exempt bonds to fund its newly constructed ballparks back in 2006. Both of these funds were managed by Thomas Metzold, the Boston based mutual fund manager.
According to Metzold, "We would only favor the Yankees' bonds over the Mets' if they're trading at the same yield. The difference in yields is what creates a market. You're constantly looking for bonds where the historic relationships are out of whack."
The finances of the New York Mets took a beating after their owners were linked to the Bernard Madoff scandal. The team's bonds though, after falling behind in values compared to the Yankee's own bonds, are starting to score high in the municipal bond market. This rise in value was confirmed through data compiled by Bloomberg.
The teams had sold tax exempt bonds back in 2006 and again in 2009 through the New York City Industrial Development Agency. The agency backed up the payments instead of charging taxes.
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