Munis offer investors an important conservative allocation in which to reap the benefits of tax-free interest. The interest on munis, unlike on Treasuries which is taxable at the federal level, is tax exempt for in-state residents at the federal, state and local levels.Bromberg...
The return for the high income muni holder is equivalent to a taxable investment paying 8.375%. Now lets consider the low income marries joint filer paying 10% Federal Tax plus 5.3% State Tax for a total of 15.3% of $5,000 or $765 dollars. The lower income individual making the exact...
There are other types of munis, however; namely, taxable munis and private activity bonds, also referred to as Alternative Minimum Tax (AMT) munis, where interest income is taxed differently than traditional munis. Taxable munis do not bear interest that is exempt from federal taxation. Interest ...
The ratio compares the net muni yields to the after-tax yield of Treasury bonds, which is based on the investor’s tax bracket. The closer nominal yields on Treasuries and munis, the smaller (lower) the ratio. But it means that munis, yielding close to taxable Treasuries, would be a bar...
The iShares National Muni Bond ETF seeks to track the investment results of an index composed of investment-grade U.S. municipal bonds.
deficits with a $3.5 billion deal. Connecticut, Florida, Kentucky, Missouri and New York City also raised money for infrastructure projects through the Build America Bonds program, which provides 35 percent interest rebates from the federal government for selling taxable debt in lieu of borrowing ...
Municipal bonds have had a strong run over the past 18 months, thanks first to the flight from the stock market and more recently to the Federal Reserve's aggressive interest-rate cuts. But now, muni yields, which fall when bond prices r... L Braham - 《Business Week》 被引量: 0发表...
The interest a muni pays is usually exempt from federal income taxes, and is also exempt from state and local income taxes if you live in the state where it was issued. However, any capital gains you realize from selling a muni are taxable, and some muni interest may be vulnerable to th...
The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable. Shares of ETFs are bought and sold at market price (not NAV) ...
“beat-up” discounted bonds are at yield ratios of 125-135% to US Treasuries. Most times, when Treasury yields rise, muni/Treasury ratios drop, simply because the tax exemption of the municipal bond means it doesn’t need as much of a rise in yields to produce the same taxable ...