Individuals Find Great Opportunities in Municipal Bonds

By Fraser, Andrew | THE JOURNAL RECORD, November 6, 1998 | Go to article overview

Individuals Find Great Opportunities in Municipal Bonds


Fraser, Andrew, THE JOURNAL RECORD


NEW YORK -- As the bulls and bears wrestle each other on Wall Street, individual investors continue to seek out a safe place to park their money and watch the fight.

The recommendation among an increasing number of investment professionals these days: municipal bonds. For the first time since 1986, yields on municipal bonds are nearly as high as Treasury bonds. Factoring in tax advantages, some munis even have returns way above U.S. government securities, which include bonds, bills and notes. And yes, they're relatively safe, too.

Treasury securities are considered the safest investments in the world because they are backed by the full faith of the U.S. government. But a recent flurry of buying has driven yields to 30- year lows. That drop has helped increase the allure of munis, which are issued by local governments to raise money to build schools, highways, hospitals and other public projects. They're second in safety only to Treasury bonds. Walter Ehrenpreis, a New York investor who hasn't bought munis since the late 1980s, recently came back to the market with some extra money he had scraped together. He was trying to shore up his portfolio from the volatility in the stock market. "At this point I want more security," said Ehrenpreis, who lives in the New York City borough of Queens. "You can't keep riding horses forever. I feel good with munis getting decent returns and competitive with Treasuries -- plus the tax advantage." The attraction of municipal securities as an enticing opportunity for individuals in the current low-inflation, low-interest-rate environment hasn't been lost on financial companies. They've been tossing out an unusual slew of research reports on munis recently. Salomon Smith Barney, Merrill Lynch and Bank of New York are among those that have been making a case for munis, which are usually considered a mundane investment product for individual investors. "In our opinion, municipals remain extremely attractive," George Friedlander, a bond research strategist at Salomon Smith Barney, said in an October report called Five Compelling Reasons To Buy Municipal Bonds Now. There are the tax savings. Municipal bonds are untaxed by the federal government, and in some cases, by the states -- a good consideration for those in high tax-brackets or high-tax states. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Individuals Find Great Opportunities in Municipal Bonds
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.