Muni Bonds: Investing in Tax-Free Munincipal Bonds
No one likes paying taxes. And if you put your money into municipal bonds, you don't have to. When state and local governments look to build bridges, highways, stadiums and a slew of other projects, they sell tax-free muni bonds to raise cash. But muni bonds aren't for everyone. Learn who should buy munis and who is better off with taxable, higher yield securities.
Should I Buy a Muni Bond? Only Your Tax Accountant Knows for Sure
For many investors, the idea of earning tax-free returns makes the purchase of a muni bond seem like a no-brainer. But munis aren't for everyone. Unless you're in the right tax bracket, owning a muni can be a very bad move.
For many investors, the idea of earning tax-free returns makes the purchase of a muni bond seem like a no-brainer. But munis aren't for everyone. Unless you're in the right tax bracket, owning a muni can be a very bad move.
Choosing a Muni Bond Fund: What to Know, What to Worry About
If taxes are a concern, but you don't have at least $100,000 to invest, you should consider buying a municipal bond fund. These mutual funds offer the same tax-free advantages of municipal bonds while also offering diversification.
If taxes are a concern, but you don't have at least $100,000 to invest, you should consider buying a municipal bond fund. These mutual funds offer the same tax-free advantages of municipal bonds while also offering diversification.
What is Bond Insurance?
When the issuer of a municipal bond wants to assure potential investors that a bond is really and truly safe, it turns to a bond insurer, also known as a monoline insurer. But recent developments in the market have made bond insurance less effective at easing investors' worries.
When the issuer of a municipal bond wants to assure potential investors that a bond is really and truly safe, it turns to a bond insurer, also known as a monoline insurer. But recent developments in the market have made bond insurance less effective at easing investors' worries.
Understanding Callable Bonds and Reinvestment Risk
Most muni bonds have a feature that allows the issuer to "call" back the bond and pay off the principal early. That poses some additional risk to investors in the debt market. But there are also some additional rewards available to buyers of callable bonds.
Most muni bonds have a feature that allows the issuer to "call" back the bond and pay off the principal early. That poses some additional risk to investors in the debt market. But there are also some additional rewards available to buyers of callable bonds.
What Are Zero-Coupon Bonds and "Strips"?
Zero-Coupon Bonds are sold at a deep discount to their face value. In many cases, interest is compounded and paid at maturity rather than during the life of the bond. In other cases, a financial institution "strips" the interest payment from a fixed-income investment and resells it as a zero coupon.
Zero-Coupon Bonds are sold at a deep discount to their face value. In many cases, interest is compounded and paid at maturity rather than during the life of the bond. In other cases, a financial institution "strips" the interest payment from a fixed-income investment and resells it as a zero coupon.
The Hero of the Muni Market: Joseph Fichera Fights for Transparency
The market for municipal bonds is a famously opaque world, where the worst of politics and finance collide. In particular, muni bond issuers routinely shy away from best practices. Favored bankers and insiders are the beneficiaries. Investors and taxpayers are the losers. But one man has fought to change how munis are issued. Bloomberg News has the story.
The market for municipal bonds is a famously opaque world, where the worst of politics and finance collide. In particular, muni bond issuers routinely shy away from best practices. Favored bankers and insiders are the beneficiaries. Investors and taxpayers are the losers. But one man has fought to change how munis are issued. Bloomberg News has the story.