Municipal Bond Forum
If you wouldn’t buy it, don’t hold it
Q
Since California dissolved its redevelopment agencies, issues of some cities have dropped below investment grade. On certain issues, current value exceeds costs, so common sense dictates this might be a good time to sell. Your thoughts?
A
James A. Klotz responds:
Although every situation must be analyzed independently, when the rating on any issue falls below the threshold of your investment objectives, it should be considered a candidate for sale.
Our feeling is: if you would not purchase a particular bond today, you probably shouldn’t hold it, either.
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.