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Caution on Tobacco Bonds


You had an article awhile ago on tobacco bonds (“Better News Ahead for Tobacco Bonds?”) and I was wondering how they are doing. I am 76 years old and interested in income.

Y., Virginia


James A. Klotz responds:

In our report, we discussed a new tobacco system that could ultimately boost the fortunes of the companies that back tobacco bonds.

While it’s too early to comment on the market effects of this product, we would advise caution.

Most tobacco bonds are rated below investment grade and considered to be speculative. At 76 years old, we suggest risk aversion should be your first priority.

Sep 17, 2019

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    This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.