Municipal Bond Forum
Whats up with the market?
Q
We have a family trust that is 100% invested in New Jersey municipal bonds, with a face amount of $1 million. The current market value of the bonds is way down and is fluctuating between $965,000 and $975,000. I am trying to understand the market conditions that are responsible for this, and my inquiries to our ML broker are not providing me with anything that I can readily understand or explain to my father.
A
James A. Klotz responds:
You are not alone. Many other investors are seeking perspective on the recent activity in the municipal bond market.
Please carefully review this page, the Bond Forum, where we address many similar questions. Additionally, see “The Reality Behind the Bond Shakeup,” where our head trader, Terry O’Grady, discusses why bond prices have been impacted by the unwinding of tender-option bond programs.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.