Municipal Bond Forum
‘You want me to do what?’
Q
I read your story, “Don’t Try this at Home,” about the ill-conceived report that recommended investors engage in “selective selling” of their munis. I had this exact situation about eight years ago with an aggressive bond trader. He was looking to make some more money and suggested I sell. I said to him, “You want me to sell all my bonds because you think I should increase their quality level and cut my income nearly in half?” He said “Yeah.” I promptly moved my money elsewhere and kept all the bonds.
A
James A. Klotz responds:
We are pleased, and we know you are, that you made the right decision. Increasingly, we find bond investors understand that municipal bonds are bought for the tax-free income they provide and not as trading vehicles.
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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.