Municipal Bond Forum
Searching for quality bonds
Q
What makes a high quality bond? How do you search for them? How can you trust anyone in the financial markets these days?
A
James A. Klotz responds:
As you know, every investment has some degree of risk and none can be judged in a vacuum.
An investor must compare the alternatives available for providing a reasonable return “on” one’s capital and the likelihood for the return “of” one’s capital.
As a municipal bond firm, we own the bonds we sell and, therefore, make every effort to vet the securities we offer thoroughly, rather than rely exclusively on the rating services.
Naturally, because bonds are long-term investments, we also have an eye to the future and the potential for continued reliable revenue streams.
As we mentioned in our article, generally, the fiscal condition of state and local issuers has been on the upswing while the number of defaults has been declining.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.