Municipal Bond Forum
Detroit and the ‘buy-and-hold’ strategy
Q
“Buy-and-hold” strategy — impacted by the Detroit bankruptcy?
A
James A. Klotz responds:
If you are asking if the Detroit bankruptcy will cause us to change our general philosophy of buy and hold, it will not.
We do, however, on some occasions recommend the sale of certain bonds when there are fundamental changes in credit quality outlook.
Detroit falls into this category, as it had experienced multiple credit downgrades in recent years. This was not a difficult crisis to predict.
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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.