BOND INVESTING STRATEGIES
DON’T LOSE SLEEP OVER BOND INSURERS’ WOES
By: James A. Klotz, President, FMSbonds.com
Bond insurers have been in the news lately as their forays in the subprime quagmire have come to light. Naturally, this has caught the attention of muni buyers, who wonder whether the insurers are strong enough to withstand substantial claims. This scrutiny has also given rise to other provocative questions, one of which was raised recently by an astute client: Is bond insurance even necessary on issues with strong underlying ratings? Full story
AMT BONDS ARE ON SALE
By: Terry O’Grady, Head Municipal Bond Trader, FMSbonds.com
Are you subject to the Alternative Minimum Tax (AMT)? If not, there are exceptional opportunities available right now. Full story
CALAMITY OR CORRECTION? THE REALITY BEHIND THE BOND MARKET SHAKEUP
By: Terry O’Grady, Head Municipal Bond Trader, FMSbonds.com
When Bear Stearns reported trouble in two of its hedge funds, the press saw it as a result of risky bets in low-grade bonds. A closer look, however, tells a different story and presents a unique investment opportunity for bond buyers. Full story
LESSONS IN LADDERING
By: James A. Klotz, President, FMSbonds.com
Few investment strategies involving tax-free bonds provoke as much discussion as laddering. Though a close analysis will reveal why it shortchanges investors, many still assert its virtues. We explore how a unique period of American economic history taught us a simple lesson for the ages. Full story
IN THE ‘BELLY’ OF THE CURVE
By: Terry O’Grady, Head Municipal Bond Trader, FMSbonds.com
Two opposing forces battling each other in the bond market have created a unique opportunity for investors in the “belly” of the curve. Full story
LONG-TERM
YIELDS DIP, INVESTORS FIND VALUE IN PREMIUM BONDS
By: James A. Klotz, President, FMSbonds.com
Muni buyers should embrace what they tend to avoid.
Full story
MAXIMIZE AFTER-TAX
INCOME WHILE LEAVING MORE TO YOUR HEIRS
By: Norman Strell, Sr. Vice President, FMSbonds.com
A timely strategy to maximize after-tax income while leaving more
to your heirs.
Full story
GM TURNAROUND
HITS HIGH GEAR
By: James A. Klotz, President, FMSbonds.com
General Motors' better-than-expected earnings sent its stock and
bonds soaring. But risk-tolerant investors can still take advantage
of GM and GMAC intermediate-term bonds yielding over 10% and 8.50%,
respectively. Full story
BULLISH ON
GM STOCK? CHECK OUT THE BONDS
By: James A. Klotz, President, FMSbonds.com
General Motors' stock price, battered last year over concern for
the automaker's prospects, is up sharply this year. But if you're
bullish on GM, the real value may be found in its bonds. Full
story
RAY OF HOPE
FOR AMT INVESTORS
By: James A. Klotz, President, FMSbonds.com
Three separate bills introduced recently in Congress would provide
relief to muni bond investors facing the AMT. Full
story
THE AMT AND WHAT IT
MEANS TO TAX-FREE BOND BUYERS
By: James A. Klotz, President, FMSbonds.com
The Alternative Minimum Tax (AMT) has become an issue for many investors,
and experts predict that the number of people paying the AMT will
grow rapidly. How does the AMT affect bond buyers? Is there a way
to mitigate the impact for investors subject to the tax? Full
story
THE
LONG AND EXPENSIVE WAIT
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
Can you time the bond market? Does it make sense to try? We continue
our look at how some widely held market beliefs can be costly to
their adherents. Full story
THE
COST OF WAITING: 2nd ANNIVERSARY
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
Just how much does it cost investors when they try to predict interest
rates? In a series we started two years ago - when pundits said
interest rates were at their all-time lows - we examined the consequences
for investors who chose to sit on the sidelines, waiting for rates
to rise. Now we give you an update, and more information you can
use. Full story
THE MYTH BEHIND
LADDERING
By: James A. Klotz, President, FMSbonds.com
Interest in the bond market is surging, and so is the advice offered
by self proclaimed experts. Unfortunately, not all of it is good.
Laddering, for example, is a popular concept but it's flawed and
should be avoided. Full story
THE
COST OF WAITING: 1st ANNIVERSARY
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
Think you can time the market? Some investors think they can. In
an update to an article first published last year, we put this strategy
to the test. Full story
THE COST
OF WAITING, PART 2
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
Some municipal bond investors are on the sidelines waiting for long-term
interest rates to rise. Others won't try to outguess the market
and are putting their investment dollars to work now. Which approach
is smarter? Read this follow-up to an earlier column comparing the
costs and benefits of each strategy. Full
story
LADDERING LEAVES
YOU WITH LESS
By: James A. Klotz, President, FMSbonds.com
The good news is that investment pros have rediscovered the tax-free
bond market. The bad news is that it's leading to confusion and
misinformation. Laddering, for example, is being touted by some
pros as sound investment strategy. We beg to differ. Full
story
A PRESCRIPTION
FOR GROWTH
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
You can buy them at a discount, they're guaranteed to grow and they
usually have higher yields than comparable coupon bonds. They're
often overlooked, but zero coupon bonds are a great buy right now.
Here's why. Full story
A STRATEGY
FOR ALL SEASONS
By: James A. Klotz, President, FMSbonds.com
A simple strategy for all times. Full
story
MY SMART
COUSIN THE TORTOISE
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
Looking for thrills or profits? Here's a family lesson in smart
investing. Full story
HOW WAITING
RAISES INCOME RISK
By: Dr. Roy Youngman, Sr. Vice President,
FMSbonds.com
Mention “risk” to tax-free bond investors and most think
of credit risk or market risk. But few consider another kind of
risk – income risk – which befalls investors who think
they can outguess the market. Full
story
WHY THE
FED IS OVERREACTING; AND WHAT IT MEANS TO YOU
By: James A. Klotz, President, FMSbonds.com
Here we go again: The Fed maybe overreacting now to last years overreaction.
How will this play out and what does it mean to long-term investors?
Full story
ACA RECEIVES
CAPITAL INFUSION
By: James A. Klotz, President, FMSbonds.com
ACA receives capital infusion; bondholders rewarded for insight.
Full story
ACA BONDS
STILL ATTRACTIVE DESPITE ACTION BY FITCH
By: James A. Klotz, President, FMSbonds.com
ACA bonds still an attractive investment opportunity despite action
by Fitch. Full story
THERE IS A SILVER
LINING IN THE CLOUD OVER ACA
By: James A. Klotz, President, FMSbonds.com
ACA cloud provides opportunity to buy investment-grade bonds yielding
as much as 100 basis points more than similar issues. Full
story
BONDS VS. BOND
FUNDS. WHICH IS RIGHT FOR YOU?
By: James A. Klotz, President, FMSbonds.com
Volatile stock prices and higher interest rates are attracting new
bond investors, but they're unsure whether to buy shares of a bond
mutual fund or individual bonds. We weigh the merits of both. Full
story
TAX SWAP SAVES
REAL DOLLARS
By: James A. Klotz, President, FMSbonds.com
There is a simple strategy that you can employ to take some of the
sting out of the depressed prices of your bonds.Full
story
DON'T MISS THE
SILVER LINING IN THE "FED WATCHING" CLOUD
By: James A. Klotz, President, FMSbonds.com
The recent rise in interest rates provides a tremendous opportunity
for holders of tax-free bonds! Full
story
WHY LADDERING
LEAVES YOU ON THE BOTTOM RUNG
By: James A. Klotz, President, FMSbonds.com
Contrary to the advice of many brokers, laddering munis is an ineffective
strategy. Here's why. Full story
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