Municipal Bond Forum
‘Sweet’ spot for munis at longer end of curve
Q
Does FMS rate the bonds independently or do they rely on S&P, Moody’s and Fitch for their ratings? And, where is the “sweet spot” for munis now when looking out over the yield curve?
A
James A. Klotz responds:
Although we do not rate bonds per se, we employ full-time credit analysts to perform due diligence on the bonds we own and offer.
Our recommendations usually lean toward the longer end of the curve because the municipal curve is typically steeper than that of Treasury or corporate bonds.
Because tax-free income is the main reason for buying munis, we believe that after quality considerations, maximizing income should be the individual investor’s priority.
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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.