Municipal Bond Forum

Home > Municipal Bond Forum > Ignore ratios, focus on longer-term municipal bonds

Ignore ratios, focus on longer-term municipal bonds


I know you are a proponent of buying long-term municipal bonds. In light of the current yield curve and muni-to-Treasury ratios, what credit rating, maturity, call date and coupon rate would you recommend?

L.C., California


James A. Klotz responds:

We do not believe in trying to time the interest-rate markets.

As you said, we are always proponents of buying longer-term bonds. They maximize income regardless of the ratio to Treasuries, which always proves to be ephemeral.

Like any investment, specific attributes of the municipal bonds you’re considering should align with your particular investment objectives.

May 17, 2018

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.

    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.