Here are a few “bullets” from this interesting meeting:
- The bond market is relatively inefficient resulting in prices that are negotiable.
- Because of the fluctuations in interest rates, it is best not to hold bonds to maturity.
- “Laddering” is a good strategy to reduce interest rate variations and have a more steady return.
- Managed bond portfolio is usually better than a bond fund because;
- It can be tailored to individual needs.
- Fees are lower than a fund.
- Difficult for individuals to do efficiently.
- Due diligence, and research
- Ability to negotiate price with large volume
- Although the tax exempt status of muni’s has been questioned, it probably won’t change.
- The larger the municipalities the better. –Lower default rate.
- Revenue bonds are usually safer because income streams finance them.
- Rating agencies are usually fairly accurate.
- Rates are expected to be flat for two years.
- org (Municipal Bond Rule Making Board) for more information.
Guest Speakers: Charles Riopel, Charles Schwab, (603) 430-6237 firstname.lastname@example.org Scott Baughman, Gannett Welsh & Kotler, LLC, Investment Mgt. (617) 236-8900, email@example.com
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