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 ...
In simple terms, bonds are a form of debt. Just as you might take out a loan to buy a car or a house, bonds are a way for governments to borrow money to pay for infrastructure projects, the military and other services, or for corporations to fund their operations, make acquisitions, ...
MUNICIPAL BONDS: THE QUALITY IS WHAT COUNTSThomas Watterson, Globe Staff
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...
Municipal bonds are loans that state and local governments receive from lenders to finance their government operations and projects. Learn more about the definition of municipal bonds and the two main types, which are general obligation bonds and revenue bonds, and explore examples of each. ...
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) ...
As the name implies, insured bonds are municipal bonds insured by policies written by commercial insurance companies. In case the issuer defaults, the insurance company will pay both principal and interest to bondholders. Before you buy an insured bond, factor in the creditworthiness of both the ...
The interest rate is determined by thesize of the couponand theprice of the bond at purchase.If it is held to maturity, it also represents the rate of return on the investment. Investment bonds are categorized based on theircreditquality. High-quality investment-grade bonds, such as government...
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...
Bonds refer to the Treasury bonds contract. The spread means the difference between these two contracts. The spread increases when the difference between the municipal bonds contract and the Treasury bond contract widens. This widening happens when the yields of the municipal contract are rising more...