Category Archives: Municipal Bonds
The municipal bond market carries two distinct types of bonds. One is the revenue bond which is guaranteed by tax revenues and local appropriation bonds which do not have the guarantee that there is a unique revenue source. California muni bonds are not different than any other municipal bond; they carry the risk of default.
To better understand the advantages of municipal bonds ETF or exchange traded funds vs regular broker bonds terms need to be defined. Bond ETFs consists of muni bonds or local government bonds. Local governments issue debt bonds to raise capital for towns, cities, and counties, to help with urban development, education, utilities or infrastructure.
Ohio municipal bonds have typically been considered an attractive investment, but this may no longer be the case for some of these bonds. Investing in municipal bonds has usually been considered a safer choice than stocks and certain other investment types, but this is no longer the case with some bonds. Municipal options are backed by the issuing municipality, and this has always been a guarantee of payment.
Are Texas municipal bonds safe to invest in? The answer will vary, depending on the specific municipal bond chosen in this state. Municipal bond interest rates may be different from one bond to the next, and some will pay a higher rate than others. While munis have been considered a safe investment this has not always held true in the last few years, and some cities and other municipalities have have to default on bond payments or even declare bankruptcy.
Is a municipal bond market crash possible, and if so why could this happen? Municipal bonds can be found in many varieties, and these are usually viewed as safer investments than stocks and other choices. There are insured municipal bonds, tax exempt options, and many other types. All of these bonds are offered by municipal entities though, which are dependent on taxpayer dollars in most cases to repay the debt.
Is municipal bond insurance still in trouble? In the last year a number of experts and analysts have predicted a high risk of municipal debt default, and the faltering economy has hit most states, counties, and cities hard financially. The municipal bond market has improved some since one year ago, but it is still not in great shape. Until the economy picks up and the unemployment rates drop, and the housing market straightens out
The best municipal bond funds for 2011 will depend on the individual investor, but there are many of these funds which will work well for a majority and that fit in with many strategies and investment goals. Vanguard Intermediate-Term Tax Exempt, symbol VWITX, is one of the top tax free municipal bond funds. This fund is considered one of the best because of the high credit rating, top quality of the bonds held by the fund, and the fund performance.
1. Austin Tex CTFS Oblig- One of the best tax exempt municipal bonds is offered by the municipality of Austin, Texas. This muni is rated AAA by Fitch, and the current yield is 4.739%.
2. Massachusetts Bay Transn Auth Rev Bds- This bond is viewed as one of the best Massachusetts municipal bonds for investors who want a tax exempt bond in this state.
How are Virginia municipal bonds rated? These bonds are rated in the same way that other bonds are, and this involves the three main credit rating agencies. These are Standard and Poor, Moody, and Fitch, and all three of these rating agencies have given a AAA rating for municipal bonds from seven states including Virginia. California municipal bonds are not valued by investors as highly
Tax free municipal bond funds are included by most investors for a diverse investment portfolio, but which ones are the best? The answer will depend on the investment strategies and goals, as well as the acceptable risk levels, but there are some which are ideal for most investors. The best municipal bond funds are ones which offer the investor tax advantages, have a good history and track record, and are given high ratings by independent rating companies like Lipper, Inc.
Municipal bond prices by CUSIP refers to the CUSIP identifier, which is an identifier that involves nine characters. This number is unique for each bond, stock, syndicated loan, and derivative that is registered in the USA, and also those registered in Canada. This includes bonds on the municipal bond market and those offered by the government. Municipal bond prices can be located by the CUSIP identifier, but where does this identifier come from and what does it mean?
There are numerous types of municipal bonds, and all of these can be categorized into two main types, which are revenue and general obligation bonds. General obligation bonds are those which make payments to investors through taxes levied. Revenue bonds are those which make payments to investors through project revenues, and they may be backed by certain tax revenues.
Insured municipal bonds are very popular with some investors, but are these bonds a safe investment? When you buy municipal bonds there is always the risk that some event beyond the control of the bond issuer will cause a default, and this means a loss of interest payments and possibly even the principal amount paid for the bond.
Tax free municipal bonds offer a number of investing benefits, including the benefit of income which is tax free. These bonds can be exempt from federal, state, and even city tax, depending on your location and the specific types of municipal bonds that you have chosen to invest in. Another benefit is capital preservation, because most of these bonds are considered extremely low risk, with the chance of a default and capital loss at almost zero percent.
New York municipal bonds are generally taxable, and this is true of the municipal bonds from other states as well. Both individual and corporate bond holders pay taxes on these investments but there are some exemptions and special considerations to this fact. When you buy municipal bonds you should research the tax implications in your specific situation before making any purchase.
Massachusetts municipal bonds come in many types. These bonds may be issued by the state, any city in Massachusetts, and other government entities in this state. When you buy municipal bonds there are certain tax advantages in many cases, and this can include city, state, and federal tax benefits in certain situations. Many investors prefer municipal bonds, or munis as they are sometimes called, because they are generally a safer and less risky investment but this is not always true.
Investing in municipal bonds is a must for many investors, for a number of reasons. How can you hedge the risks involved with these bonds though? There are a number of steps that you can take before investing to minimize the risk level, and the fact that they are municipal bonds means that they already are considered a lower risk than most corporate bonds. High yield municipal bonds can seem very attractive because of the higher yield that they promise, but it is important to remember that the higher yield also means higher risks. One way to hedge against risk when investing in municipal bonds is to invest only in bonds which have a top credit rating, because this means a very small risk of default.
High yield municipal bonds electronically traded funds offer both benefits and risks for any investor. Many investors see investing in municipal bonds as a very low risk option, but this does not make these securities risk free. When the goal is a high yield and the investment is into an electronically traded mutual fund the risks can increase though, and these investments may not be as safe and conservative because of these factors. Any time the yield of an investment increases the risks associated are also increased. High yield municipal bonds, and the ETFs that invest in these bonds, are not right for everyone, but they can be ideal for some investors after careful consideration.