Municipal Bond Forum
Margin buying risky
Q
Excellent facts on laddering. I will never need the principle of my portfolio and have more than $1 million in long-term tax-free bonds. May I suggest you touch on margin buying in the future.
A
James A. Klotz responds:
We are pleased this strategy is working for you.
Borrowing against tax-free bonds to buy more bonds comes with a number of inherent market and tax pitfalls. You may want to contact us to discuss this subject in greater detail.
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