What are municipal bonds? Government Financing: In the private sector, companies can be funded by equity financing where ownership is sold in exchange for liquid assets, or by debt financing where a loan is issued or taken out by the company in exchange for promised interest payments. The gove...
Municipal bonds are securities issued by local governments, such as a city, state, county or municipality. When you buy a muni bond, you’ll receive interest payments at regular intervals, typically twice a year, and then get your principal, or initial investment, paid back to you on the ...
Bond ETFs are funds that invest in a basket of bonds. Picking individual bonds can be challenging, time-consuming, and expensive; bond ETFs allow you to buy a broad portfolio of bonds with the click of a button, for a known price and relatively low fee. ...
budgets. Some municipalities have defaulted on municipal bonds. The “muni bond” market seems to still be highly rated by ratings agencies, but some professionals are hinting that the municipal bond may not be the “lock-box” that it previously had been for pension funds and other investments...
1. General obligation bonds These municipal bonds are issued by governmental entities, but are not backed by revenues from the project they are used to sponsor, such as a toll road. While some general obligation bonds are payable from general funds, others are backed by dedicated taxes on prop...
MUNICIPAL BONDS: THE QUALITY IS WHAT COUNTSThomas Watterson, Globe Staff
Types of bonds There are several types of bonds available that offer distinct features, risk profiles, investment objectives and risk tolerances. U.S. Treasury bonds Corporate bonds Municipal bonds Agency bonds Savings bonds Certificates of deposit (CDs) ...
Municipal bonds, often referred to as‘munis,’are debt securities issued by state and local governments or their agencies to fund public projects and infrastructure development. These bonds play a critical role in financing essential public services, such as schools, hospitals, roads, and utilities...
The best municipal bonds are AAA rated general obligation bonds. Generally municipal bonds are thought to be less risky than stocks because city and state governments back them. Usually to invest in a municipal bond most investors need to have a minimum of $10,000 and some funds even require...
If a friend asks, “Are tax-exemptmunicipal bondsa better investment thantaxable bonds?,” and you immediately answer with a hard “yes” or “no,” you might be doing your friend a disservice. The correct answer depends on a host of factors specific to a person’s individual circumstances...