Listening to Your Bond Manager
A seasoned bond manager will likely see past a lot of the panic surrounding the market. Municipal bonds can still hold considerable value when you play a cool hand and look to the facts while employing sound investment practices. It all starts with assembling a sound bond portfolio, which involves knowing how to find that perfect line between appreciable returns and risk.
Municipal Bonds: Still Sturdy
While there are some who have suggested the muni market is getting to be too risky to consider, as the state and local governments are dealing with high deficits and dwindling tax revenues, many a prominent bond manager would still suggest the municipal bond is still going strong.
The statistics show that muni default rates are still extremely low. In fact, only 54 of the bonds that were issued and rated by Moody’s had actually defaulted during the last four decades. Every bond manager that’s a mover and a shaker understands the value of a diversified bond portfolio and will encourage you to turn to munis. They may also urge you to consider a new form of muni, the Build America Bond.
Muni bonds Vs BAB Bonds
There’s simply never been a taxable muni that’s enjoyed the same sort of popularity as BABs, which have sold an astonishing $100 billion since first being issued in 2009. In fact, BAB bonds are so popular right now, they’re becoming an overseas sensation and bond portfolio staple everywhere. In the Middle East, it is now more popular to invest in American debt thanks to these muni bonds. It’s become quite tempting to include BABs in every bond portfolio, but you still want to play the market intelligently – with advanced tools that act as your eyes and ears in the investment world.
Becoming Your Own Bond Manager
How can you capitalize on the immense popularity and security that munis currently offer? You can look to the most high tech tools on the Internet to help you assemble the smartest bond portfolio. Naturally, your instincts may be to flock to the highest rated bonds, but you also want to take matters into your own hands and personally determine the bond pricing and yields. BondView.com makes the process of conducting research far more accessible, offering cutting edge analysis solutions that control bond portfolio risk, enabling you to be a sound bond manager.