Special Offer: Marilyn Cohen says run and buy tax-free prerefunded muni bonds.

FORBES: Investor Sentiment Split Over Short-Term Market Direction

Once a municipal bond is refinanced, (prerefunded) the issuer uses the proceeds of the new issue and purchases US Treasury securities (collateral) that are used to pay the interest and principal on the original, more expensive debt until maturity or the call date, whichever the escrow agreement states.

FORBES: Pre-Refunded Munis Are A Bargain