Municipal Bonds: Contents
What Are Municipal Bonds?
An Investment for Today's Tax-Conscious Investor
How Safe Are Municipal Bonds?
The Advantages of Tax Exemption
Understanding Yields
Understanding Market Risk
Understanding Calls ...
Municipal bonds - bonds that are issued by state and local governments.
Municipal bond issuers are exempt from all federal acts and regulations (except anti-fraud provisions).
Municipal bonds explained
By Jakob Jelling
Cashbazar.com
The difference between general obligation and revenue bonds.
Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility.
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municipal bonds
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fixed income investments
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As I point out in the article Investing in Municipal Bonds: Determining if Tax-Free Munis are Right for Your Portfolio, ...
Types of Municipal Bonds
A municipal bond is basically a loan from an investor to a state or local governmental entity or agency, whereby a loan is repaid at a specific time, with usually a specific rate of interest.
Municipal bonds or munis in the United States are debt securities issued by municipal government agencies.
Municipal Bonds
Debt instrument issued by a state or local agency.
Mutual Fund ...
Municipal bonds: Bonds issued by local government authorities, including states, cities, and their agencies.
Municipal Bonds
A bond issued by a state, municipality, or revenue district. Municipal bonds exempt from federal and, in some cases, state and city taxes.
Municipal Bonds: Municipal bonds are bonds issued by state or local governments in order to finance their municipal needs or special projects. They may also be referred to as revenue bonds. The Public Funds Investment Act, section 2256.
Municipal bonds are debt securities that states, cities, counties, and other governmental entities issue to raise money for public purposes-such as building schools, highways, hospitals, sewer systems, and other special projects.
Municipal bonds, also known as munis, are debt securities issues by states and local governments looking to raise money to build new roads, schools or to pay for other initiatives.
Municipal bonds, known as "munis", are the next progression in terms of risk. Munis are issued by state and local governments and they don't go bankrupt that often, but it can happen.
Municipal bonds or munis offer a tax-free return, which can be very attractive. However, they are difficult for individuals to buy because they come in very large denominations.
Municipal bonds have the potential to be completely tax free. They are also known as "munis", and because of the potential tax savings, the yield is typically lower than that of a taxable bond.
Municipal Bonds: Debt securities issued by state and local governments, and special districts and counties.
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Charts ...
Municipal bonds are issued by states, cities, and countries, or their agencies (the municipal issuer) to raise funds. The methods and practices of issuing debt are governed by an extensive system of laws and regulations, which vary by state.
Municipal bonds that are delivered without a legal opinion from a bond law firm.
Excess Spread
Remaining net interest payments from the underlying assets of an asset-backed security, after all payables and expenses are covered.
MUNICIPAL BONDS
Municipal bonds, munis for short, are debt securities issued by state or local governments or their agencies to finance general governmental activities or special projects.
Municipal bonds in which the bondholder pays no federal, state, or local taxes on the interest. In general, bonds issued by possessions and territories of the U.S. (e.g. Puerto Rico) are triple tax exempt.
Underwriter ...
- Municipal Bonds - Bonds issued by local authorities.
- Asset Backed Securities - Bonds which are securitized by cash flows from a pool of assets such as auto loans, home equity loans and aircraft leases.
See: Municipal Bonds; Rating; Tax Exempt Security; Yield
Whole Life Insurance
Form of life insurance policy that protects the insured's beneficiary(s) in case the insured passes away.
Like all municipal bonds, it is relatively easy to bond issues that are configured as a combination bond. Many municipalities publish listings of current bond issues that are available, and note the type of bond involved.
Underlying debt
Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility.
[ITDS] arbitrage (A) With respect to the issuance of municipal bonds, arbitrage usually refers to the difference between the interest paid on the bonds issued and the interest earned by investing the bond proceeds in other securities.
com mob spread The yield spread between tax-free municipal bonds and treasury bonds with the same maturity. mode A statistical term, referring to an average found by determining the most frequent value in a group of values.
AMBAC Indemnity Corporation One of the largest private insurers of municipal bonds. This insurance provides that the bonds will be purchased from an investor at par value should the bond issuer default.
Case Study Unlike most long-term corporate and municipal bonds, U.S. Treasury bonds cannot generally be called prior to their scheduled maturity dates. The U.S.
Municipal bonds
Bonds issued by states, cities, counties, and towns to fund public capital projects like roads, schools, sanitation facilities, bridges, as well as operating budgets.
This status is granted to most municipal bonds, which pay interest that is totally free from federal taxes. Municipal bond interest is also usually tax-exempt to bondholders who are residents of the issuing state.
The municipal bonds are typically exempt from income tax. The revenue bond is a special sub-category of the municipal bonds. The repayment guarantees are based on a certain revenue generating structure which matches the purpose of the revenue bonds.
On corporate and municipal bonds, interest is calculated on 30-day months and a 360-day year. For government bonds, interest is calculated on actual days and a 365-day year.
Municipal Bonds - These are bonds issued by towns, cities, local governments, and regional agencies to fund various projects. Their default risk is low but not zero.
The interest is usually exempt from federal income taxes, which has made municipal bonds favorites of people in high tax brackets. In fact, bonds issued by the state in which you live are exempt from state taxes as well.
Tax-Free Bond Fund When a mutual fund invests in municipal bonds, it is eligible for a tax break.
BOND INSURANCE - A guarantee by a bond insurer of the payment of the principal of and interest on municipal bonds as they become due should the issuer fail to make required payments.
Mutual fund that invests in municipal bonds. There are two main types of municipal bond fund: national tax-free funds and state tax-free funds. National tax-free funds invest in municipalities across the U.S. and are exempt from federal income taxes.
Yield burning is a method of financing municipal bonds which involves an underwriter placing large markups on US Treasury bonds used to compensate investors while waiting for repayment of old bonds after issuance of the new bonds.
Bond Swap: Selling municipal bonds (usually at a loss) and using the proceeds to buy other municipal bonds, to establish a loss for tax purposes, to diversify a portfolio, to increase cash flow, or increase yield. Also known as tax swaps.
General Obligation Bond (G-O Bond) State or municipal bonds in the United States that are approved by voters and backed by the full faith, credit and taxing power of the issuer.
Government securities
Municipal bonds
Corporate bonds
U.S. Savings Bonds
Mortgage and asset-backed securities
Government agency securities
Treasury bills
Bank certificates of deposit
Commercial paper ...
Credit default swaps typically apply to corporate debt, municipal bonds, and mortgage securities, can be bought by any investor even if the buyer does not own the particular credit instrument, and are sold by banks, hedge funds and others.
Basis Price - A method of pricing municipal bonds, T bills, and certain other instruments. It is an expression of yield to maturity.
Bear Market - A market in which prices are generally declining.
Conservative investments like municipal bonds have low annual failure rates. Speculative Investments, like commodities and futures trading, have high failure rates.
This ETF has a broad set of holdings from throughout the universe of municipal bonds, which pay interest that's tax-free to investors. For high-bracket taxpayers, munis can give you better after-tax returns than traditional bonds.
The most common of the interest rate trades includes treasury bonds, fed funds, and municipal bonds. When trading in the interest rate market, the investor is attempting to capitalize on the long and short term changes in the yield curve.
Fund managers will leverage all types of securities, including stocks and fixed income investments such as municipal bonds, corporate bonds, government bonds, and other forms of short term debt. << Part 1: Introduction to ETFs ...
Standard & Poor's
A company that rates stocks and corporate and municipal bonds according to risk profiles and that produces and tracks the S&P indices. S&P also publishes a variety of financial and investment reports.
Tax-Free Bond Funds invest in the municipal bonds issued by state and local governments to fund general expenditures and public projects.
Tick ...
Taxable equivalent yield: A term used primarily with municipal bonds, which are tax-exempt. The taxable equivalent yield is calculated to provide an easy means of comparing tax-exempt bonds with taxable bond yields.
There are several basic types of mutual funds: stock funds, owning shares of common stocks; bond funds, owning corporate bonds, tax-free municipal bonds, government bonds; index funds, investing in a portfolio that mimics an index, such as the S& ...
While the SEC cannot recommend any particular investment product, you should know that a vast array of investment products exists, including stocks and stock mutual funds, corporate and municipal bonds, bond mutual funds, certificates of deposit, ...
Municipal bond fund A mutual fund that invests in municipal bonds and passes through tax-free income to its shareholders.
A bond issued by a city, county, state or other political entity. Interest paid on most municipal bonds is exempt from federal income taxes and often from state and local taxes as well. (Compare Bond, Corporate bond, U.S. savings bond.) ...
Tax-Exempt: Investments (e.g., municipal bonds) where earnings are free from tax liability.
The issue is bought back in stages, usually an annual installment. This is the way municipal bonds are retired-a lot of money is borrowed in ...
Series ...
In the mean time you can invest in money market funds, CDs, and highly rated corporate and municipal bonds. There are many suitable alternatives to stocks but it will depend on your specific investment needs.
Buy transactions
Option transactions (buys or sells)
Non-taxable dividends
Non-taxable interest (example: municipal bonds)
Margin interest charged
Master Limited Partnership (MLP) distributions ...
Chicago Board of Trade: US futures exchange on which financial instruments (T-Bonds, T-Notes, Municipal bonds) & the Grain Complex (corn, oats, soybeans, etc.) is traded.
 See also: Municipal Bond, Bonds, Market, Investment, Issue
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