Bond Portfolio Strategy: Follow the Proper Municipal Bond Example

To include a muni in your bond portfolio is by no means a mistake – even in this age of economic turmoil. Even if you should happen to put stock into the warnings expressed by prominent investors over the possibility of a future bond market collapse, keeping your ear to the ground and accessing the best online bond value assessment tools today to search out the safest municipal bond example can translate to a sizeable fixed income.

Treasury Bonds: A Happy Harbor with Little Profit

Currently, the trend among anxious investors is to hide behind the safest investments; now, seemingly every bond portfolio out there is being lined up with treasury bonds. While this may seem like a common sense solution to avoiding bond defaults, the reality is that playing it too safe in the bond market can make it difficult to make a reasonable profit.

In defense of muni bonds, analysts have continued to point to the same tried and true municipal bond example (and for good reason) -- essential service revenue bonds, which have always been a near-failsafe investment option that have benefited many a bond portfolio over the years. Moreover, while the clout behind bond ratings has largely lost its luster, the reality is that these AAA municipal bonds are far less likely to default than junk bonds.

Do it Yourself Bond Analysis

Of course, we’re not going to suggest you rely entirely on bond ratings. It's already been established how important it is for an investor to personally look up muni bond yields to assess risk, and now LPL Financial has publicly suggested this very same strategic municipal bond example going forward, as the economic recovery is slowly beginning to roll into effect.

Ultimately, municipal bonds are an important cornerstone of any bond portfolio, because they provide the perfect combination of low risk, relative to corporate bonds, and the most alluring aspect of all for any investor: attractive fixed income that far exceeds Treasury bonds. Now, with the default rates on munis falling to historic lows, even the muni bond detractors should concede munis’ minimal risk.

While we can’t predict the far-reaching future, a bond portfolio containing municipal bonds is presently translating to predictable profits for investors who take the time to find those of the highest quality. To find a prospective municipal bond example and build out your bond portfolio with savvy, take advantage of BondView.com’s cutting-edge, common sense tools.