Municipal Bond Forum

FMSbonds, Inc.’s Municipal Bond Forum is an exclusive opportunity for investors to submit questions and comments on the bond market or to respond to one of our articles.

To participate, just send us an e-mail. Be sure to include your name or initials and your state of residence. Posted e-mails may be edited for length and clarity. If you prefer a private response, please note that in your e-mail. Responses are provided by James A. Klotz, president and co-founder of FMSbonds, Inc., a municipal bond specialist for more than 35 years, and other members of the firm as noted.

Postings are listed by date. If you have any questions, please call us at 1-800-FMS-BOND (1-800-367-2663) or e-mail us.

Laddering and the possibility of rising interest rates

After reading your article, "Why laddering leaves you on the bottom rung," it became very clear as to why over the last 25 years laddering has failed: Interest rates have been in a steady decline. I wonder, though, if laddering might not be the way to go for the future. Can we not expect a reversal of this decline? There really isn't much expectation for lower interest rates, or am I wrong? I will be selling my business very soon, and companies I have been interviewing are all planning to use tax-free munis for the largest portion of my cash to provide my income. I honestly don't know if they plan to ladder or not. I will certainly find out after reading your articles. I would still like a comment on the future position with regard to possibly rising rates making a ladder more attractive.

Pure flat tax doubtful

I think tax-exempt bonds are great but what do you think will happen to bonds when Congress passes a flat tax?
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