Created by: Timmwilson
Number of Blossarys: 22
Municipal bonds, aka 'munis', are debt issued from the government, with a promise to pay back in the future. The reason why these munis become attractive for an investor is when they are seeking to ...
Municipal bonds, being investments into local governments, are not risk free. Although you can conserve capital and receive payments at a tax free rate, the following are risk factors present with ...
This is a risk present when a issuer of debt is unable to either make interest payments on time, or is unable to pay back the principle of the investment. To evaluate whether your municipal ...
Interest rates for municipal bonds, for the most part, is a fixed rate, not a floating rate with the market. This means that the rate of interest received is fixed for the duration of the bond till ...
Not necessarily a bad thing. Call risk is when the issuer decides they want to buy back all or a portion of the bond before the maturity date. The investors capital is repaid with an additional ...
There are 2 basic passive bond buying strategies. First is the classic purchase of a bond, and hold it till it matures. Second, slightly more involved is using a 'bond ladder'. This strategy involves ...
A general obligation bond is debt issued by the municipality, and is backed by the credit of the issuing party. They are trusted under the assumption the municipality will be able to repay through ...
By: Timmwilson