When buying taxable bonds, the investor is providing a loan to acorporationor government entity. Those who hold such bonds have no ownership stake in the company, but will receive regular payments on the outstanding debt until it is paid off. Investors often consider these bonds good options be...
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...
There are a couple of different types of muni bonds, including:General obligation (GO). These are issued by a government and allow the government entity to tax residents in order to pay back the bondholder. Some general obligation bonds are from general funds or backed by dedicated taxes, ...
As the name implies, the income generated from this type of municipal bonds is not tax-exempt. Municipal bonds are taxable when the projects sponsored by bondholders do not provide significant benefit to the public. Bonds issued to finance projects like stadiums, renovation of government offices,...
Why are convertible bonds attractive now? Kramer believes that convertibles are one of the few fixed income markets still offering real value available as 2025 approaches. They not only offer attractive yields, they also can enjoy future potential gains in the stock market that many investors are...
advantaged retirement account, the tax-exempt status of government bonds won't benefit you. Earnings inside an IRA are already exempt from taxation. That doesn't necessarily make them bad investments for your retirement accounts; it simply nullifies the tax advantages compared to taxable securities...
Abond, which is a limited-life intangible asset, is essentially a loan agreement between the issuer of the bond (i.e., corporation, government, ormunicipality) and the bondholder. For risk-adverse investors, bonds can be an attractive way to receive an anticipated return and safeguard capita...
Learn about the IRS 1099 Form: See what it's for, who gets it, how to fix mistakes, the different kinds, and why e-filing makes it easier.
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...
Investors can choose bond funds that buy only the highest-quality and safest bonds, such as U.S. government bonds or the bonds of blue-chip companies. High-quality bonds pay lower interest than riskier bonds. Investors should note that U.S. government bonds are considered to be of the high...