No. of Recommendations: 0
Me, I mark-to-market, so I do consider there to be interest rate risk to principal when buying individual bonds.

I was just offering a quick first look. If you buy individual bonds and you can't hold to maturity or if you have to deal with calls buying at a premium (and a lot of those bonds were at a premium) interest rate risk is there. But with a fund, if interest rates are higher when you sell than when you buy, you sell shares for a loss, period.

Whether these PA munis can be had in a way that makes more sense than a fund, or something other than munis, would require a closer look. My initial look suggests further looking is warranted.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement