Your article on the value of munis right now is on the money and you bring the hay to the barn before it gets wet. Love your insight.
G.P., Wisconsin
Insight appreciated
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Municipal Bond Forum
FMSbonds, Inc.’s Municipal Bond Forum is an exclusive opportunity for investors to submit questions and comments on the bond market or to respond to one of our articles.
To participate, just send us an e-mail. Be sure to include your name or initials and your state of residence. Posted e-mails may be edited for length and clarity. If you prefer a private response, please note that in your e-mail. Responses are provided by James A. Klotz, president and co-founder of FMSbonds, Inc., a municipal bond specialist for more than 35 years, and other members of the firm as noted.
Postings are listed by date. If you have any questions, please call us at 1-800-367-2663 or e-mail us.
Buy, sell or hold tobacco bonds?
What is your feeling on tobacco bonds – buy, hold or sell? Prices are way down. How much risk is there in holding?
R.L., Florida
GM bonds should be converted into stock within six months
Bondholders have not received interest from GM bonds for a long time. When will this money problem be solved? Are we entitled to retro-interest?
F.G.
Specifics on GM bonds not yet known
Thank you for the GM article, but I still do not understand what you mean when you say bondholders “will receive 10% equity in the new GM along with warrants for an additional 15%.” If I own 100 of the 9.40% bonds, how many shares of stock and warrants will I receive?
J.C., Florida
GMAC bonds different than GM bonds
I read your article on GM, I recently purchased GMAC smart notes B/E monthly survivor option. coupon 7.50% due 11/15/17. How is this bond impacted by the things mentioned in your article.
W.N., Florida
No shortage of doomsday scenarios
I have an account with your firm and all is going well! But I read a story in The New York Times recently quoting a hedge-fund manager who lays out a depressing sequence of events. He says governments can’t borrow much more and are being forced to print money. He says that will be followed by a new bubble in long-term bonds, which in turn will cause currencies to collapse. If that happens, how could municipalities cope? I realize your view that long-term bondholders keep bonds to maturity and collect the interest, but if currencies are in bad shape, doesn’t that undermine the merit of holding municipal bonds?
J.D., Virginia
MBIA litigation
Last year MBIA split its bond insurance business. NATL became the municipal bond insurer and MBIA remained to insure the other assets, such as mortgages, and other real-estate related products. This split was challenged by several New York brokerage houses. I was wondering where those challenges currently stand.
R.W., New Jersey
Build America Bonds for tax-deferred accounts
I’m about to turn 60. Because I’m past 59 1/2, I was able to annuitize some of my IRAs without paying penalties. I need the income from my IRAs because I can only work part-time now and am not able to make as much money as I could before. Does it make any sense for me to invest my remaining IRA funds to purchase tax-free municipal bonds or invest in a tax-free municipal bond fund? Because all of my IRAs are pre-tax qualified funds, I assume I would have to pay income taxes on any funds that I take out of my IRAs to purchase or invest in anything else.
D.E., New Mexico
Time to Sell?
With bonds currently high priced, is this a good time to sell some and buy stocks? The Federal Reserve is expected to buy bonds over the next eight months. Would it be better to hold bonds until the Fed stops buying?
S.B.
Bond insurance information on confirmation
How can you tell if your bonds are insured, and by whom? We have purchased two municipal bonds via FMSbonds and I don’t see any indication of insurance.
J.L., Kansas
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