The primary concern of all bond investors is whether they will ultimately get their money back. This is especially the case with municipal bond investors: Municipal bond investors willingly accept lower yields compared to other fixed income investments primarily due to the safety record of municipal bonds.
When an issuer fails to live up to the payment obligations of a particular …
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Home » Archive » EducationDefault Rates and Risks of Municipal Bonds - Part 1
October 18, 2009 # 1:54 pm # Education # Comments OffTax-Free Income: The key benefit of municipal bonds
January 20, 2009 # 6:27 pm # Education # 7 CommentsThe interest income earned from municipal bonds is tax-free of all federal income taxes regardless of your tax bracket. This is the most significant benefit of municipal bonds and it is a characteristic unique to municipal bonds. Not even US Treasuries offer income that is free from federal income taxes.
Additionally, municipal bonds can be free of state income taxes as …
How to Buy New Issues of Municipal Bonds through Retail Order Periods
June 26, 2009 # 5:49 pm # Education # 2 CommentsThere are two ways to buy municipal bonds: 1) Investors can buy municipal bonds when the bonds are first issued or 2) investors can buy bonds after the bonds have been issued in the secondary market. This is similar to stocks; investors can buy stock during the IPO (initial public offering) or after the stock begins trading in the market. …
How to Buy Municipal Bonds
February 28, 2009 # 5:21 pm # Education # 6 CommentsThis is an introduction on how to buy municipal bonds in the secondary market in the most basic sense. Individual investors can buy bonds when the bonds are originally issued or buy bonds in the secondary market after the bonds have already been issued. For the purposes of this article, we will cover buying bonds in the secondary market. We …
The 5 elements of a municipal bond trade: Maturity, Interest Rate, $ Amount, Price, and Yield
January 20, 2009 # 5:27 pm # Education # Comments OffEvery municipal bond trade has 5 basic elements. The 5 elements are maturity date, interest rate, price, $ amount traded, and yield.
3 of the 5 elements are similar to the elements of a bank CD. For a CD, these are the amount invested, the length of the CD, and the interest rate. For a municipal bond, the 3 similar concepts …
A Basic Overview: What are Municipal Bonds?
January 20, 2009 # 3:27 pm # Education # Comments OffMunicipal bonds are bonds that are issued by state and local governments. By issuing municipal bonds, local governments borrow money to build bridges, roads, hospitals, schools, sewer systems, stadiums, airports, power plants, prisons, and provide for other needs of local governments. Municipal bonds are generally issued to raise money for major capital projects.
Welcome: The New MunicipalBonds.com
January 19, 2009 # 3:28 pm # Education # Comments OffWelcome to the new MunicipalBonds.com. For the next 6 weeks, we will be in our test launch phase. Our official launch will be on March 1. For our test launch, we will be unveiling an assortment of tools, articles, features to help individual investors stay updated on the municipal bond market.
We have a full-featured data center with daily prices …
