Municipal Bond Forum
Searching for quality bonds
Q
What makes a high quality bond? How do you search for them? How can you trust anyone in the financial markets these days?
A
James A. Klotz responds:
As you know, every investment has some degree of risk and none can be judged in a vacuum.
An investor must compare the alternatives available for providing a reasonable return “on” one’s capital and the likelihood for the return “of” one’s capital.
As a municipal bond firm, we own the bonds we sell and, therefore, make every effort to vet the securities we offer thoroughly, rather than rely exclusively on the rating services.
Naturally, because bonds are long-term investments, we also have an eye to the future and the potential for continued reliable revenue streams.
As we mentioned in our article, generally, the fiscal condition of state and local issuers has been on the upswing while the number of defaults has been declining.
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.