1-800-367-2663
1-800-367-2663
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-FMS-BOND (1-800-367-2663) or e-mail us.
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
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
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
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
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.
Great article on the Ambac situation, but where does this leave the individual investor? Your article mentions “scrutinizing” the individual issuers, but that is very difficult if you are not a financial analyst by nature. I am an avid investor and a past analyst and even I have to dig through hundreds of pages just to make a judgment call on these issues and issuers.
T.C., Maryland
What do you think of the chances of restructuring of Ambac to cover only municipal bonds? Or the possibility of Assured Guaranty reinsuring some of the Ambac muni bonds?
S.W., California
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