Municipal Bond Forum
A ladder you can use
Q
You are correct in your assessment of muni bond laddering, but you failed to mention that if you buy one 30-year bond every year, you have effectively created a ladder, or an average life of no more than 15 years, which is now equivalent to holding medium-term bonds, while enjoying higher yields than otherwise. The key is to get started and don’t stop.
A
James A. Klotz responds:
Excellent point. We couldn’t agree more.
Start here.
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