Municipal Bond Forum
Margin buying risky
Q
Excellent facts on laddering. I will never need the principle of my portfolio and have more than $1 million in long-term tax-free bonds. May I suggest you touch on margin buying in the future.
A
James A. Klotz responds:
We are pleased this strategy is working for you.
Borrowing against tax-free bonds to buy more bonds comes with a number of inherent market and tax pitfalls. You may want to contact us to discuss this subject in greater detail.
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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.