June has historically marked not only the end of school and the beginning of summer, but also the annual peak in municipal bond redemptions.
This year is expected to follow the same pattern, with over $100 billion in munis expected to roll-off in June, July and August.
The opportunity to reinvest principal is one of the benefits of holding individual bonds, but with current rates and economic uncertainty, many advisors and their clients may be uncertain about how to reinvest–or even if they will want to reinvest in municipal bonds.
In addition to all of the factors that should normally be considered….
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March 29, 2016
The opinions expressed and the information contained herein is based on sources believed to be reliable, but its accuracy or appropriateness is not guaranteed. This is not a recommendation to buy, sell or hold any of the securities or strategies mentioned. The author does not provide investment, tax, legal or accounting advice. Investors should consult with their own advisor and fully understand their own situation when considering changes to their strategy, tactics or individual investments. Past performance is interesting but is not a guarantee of future results. Investments in bonds, and fixed income funds or ETFs are subject to gains/losses based on the level of interest rates, market conditions and changes in credit quality of bond issuers. Additional information available upon request.
©2016 Patrick F. Luby