This morning, I placed a call to the Fidelity Fixed Income desk and requested them to liquidate half of my municipal reset bonds. The rep was very friendly and helpful. I read out the CUSIP numbers to him, he repeated them back to me and the sale orders were submitted.
Three hours later when I logon to the Fidelity website, I noticed that the bonds were succesfully sold. The trades will settle tomorrow. There were no transaction fees.
What prompted my sale was partly due to the recent troubles with the bond insurers, but the main reason was that I am getting closer to the time when I need to use the money. I will be moving the sale proceeds into the Fidelity CA AMT-tax free money market fund in the mean time. I intend to sell off the rest of the bonds when they reset next week.
Update 12/06/07: All my municipal reset bonds have been liquidated. There were no issues with “failed auction”.