Municipal Bond Forum
Ignore ratios, focus on longer-term municipal bonds
Q
I know you are a proponent of buying long-term municipal bonds. In light of the current yield curve and muni-to-Treasury ratios, what credit rating, maturity, call date and coupon rate would you recommend?
A
James A. Klotz responds:
We do not believe in trying to time the interest-rate markets.
As you said, we are always proponents of buying longer-term bonds. They maximize income regardless of the ratio to Treasuries, which always proves to be ephemeral.
Like any investment, specific attributes of the municipal bonds you’re considering should align with your particular investment objectives.
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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.