Also addressed is why a potential buyer of the bonds would be interested in this service and, additionally, what operational highlights an analyst needs to look at in terms of comparing the various municipal bond insurers. It is discussed that to better understand how municipal bond insurance ...
Municipal Bonds:Issued by states and municipalities. Somemunicipal bondsoffer tax-free coupon income for investors. Government Bonds:Bonds issued by the U.S. Treasury with a year or less to maturity are called “Bills,” bonds issued with one–10 years to maturity are called “notes,” andgov...
I had an online conversation recently with financial advisorAllan Roth, who mentioned that he tells his clients to put no more than 20% of their bonds into municipal bonds (munis) due to default risk. He's not the only one worried about default risk either. Bill Bernstein has suggested tha...
Municipal Bonds:Issued by states and municipalities. Somemunicipal bondsoffer tax-free coupon income for investors. Government Bonds:Bonds issued by the U.S. Treasury with a year or less to maturity are called “Bills,” bonds issued with one–10 years to maturity are called “notes,” andgov...
Usually referred to as “munis,”municipal bondsare a type of government bond issued by state or local governments. The main advantage of munis andmuni fundsis that the returns they generate are exempt from federal taxes and, in some cases, from state and local taxes too. ...
municipal bondrefunded bondSummary This chapter provides the analytical framework for determining the structure and credit quality of municipal bonds that have been refunded. Refunded bonds are discussed in terms of: the general structure of an escrow fund, the reasons why bond issuers refund their ...
For example, if you purchase a 20-year municipal bond but need the money before 20 years, you will likely have to sell at a discount. If you lock in a 10-year treasury bond at 3.92% but inflation continues to increase, then you've locked in a suboptimal yield. You could have purchas...
If your goal is to protect investment principal from losses, consider: Short-term U.S. Treasury bonds Short-term investment-grade corporate bonds Short-term investment-grade municipal bonds If your goal is to diversify your portfolio and add income, consider: Short- and intermediate-term U.S. ...
The conversation addresses the track record of ratings in the muni market and the reasons for unrated municipal bonds. They also discuss what happens if a muni bond were to default. If you enjoy the show, please leave a rating or review on Apple Podcasts....
When you buy a bond, you are loaning money to a company, government, or agency. Investors can purchase individual bonds or bond funds. Government, agency, and municipal bonds may offer some tax advantages. Corporate bonds are taxable.Bonds...