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Subject:  Re: Municipal bonds: A train wreck waiting to ha Date:  12/7/2012  7:57 PM
Author:  yodaorange Number:  410779 of 502745

Crackdlaw said:

I would think someone buying individual bonds, especially those requiring an initial investment of $10,000. +, would have some degree of savvy and an intelligent investing approach if they are managing their own money. These individuals should be aware of call dates on bonds.

Crackd, unfortunately some folks that buy individual bonds clearly do NOT understand what they are buying. A while back, I had a long meeting with the head of bond trading for a nationally recognized firm that caters to individual investors. We talked about the range of individual investors. He confirmed my suspicion that some investors only understand and look at “current yield.” They take the annual dividend and divide it by purchase price. These folks do NOT u