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Review municipal credits periodically

Q

I own over 200 individual, mostly insured municipal bonds not subject to the AMT. I’ve acquired these different issues over the past 20 to 30 years. They were not purchased for gain or loss, though I have taken some gains as they present themselves. With the portfolio now decreasing in value, I don’t anticipate any sales. Despite possible inflation and defaults by insurers, I am not overly concerned in that it would seem suicidal for the debtors to default, especially if they ever want to borrow another cent. Your thoughts?

R.H., Ohio

A

James A. Klotz responds:

As you can tell by perusing our Web site, your buy and hold investment philosophy for municipal bonds is what we recommend.

We do, however, suggest that municipal credits be reviewed periodically to determine if any major changes have occurred in any of your holdings. If we can assist you in this regard, please contact us.

Feb 28, 2011

Start here.

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