Because municipal bonds are generally tax free.
Because municipal bonds seek to provide tax - free income, they have generally offered higher yields than their taxable counterparts.
Because municipal bonds are sensitive to interest rate movements, the fund's yield and share price will fluctuate with market conditions.
Because municipal bonds tend to have lower yields than other bonds, the tax benefits tend to accrue to individuals with the highest tax burdens.
Because municipal bonds are not taxed by the Federal government, munis are priced for the super-wealthy.
Not exact matches
Daniel Hanson, an analyst for Height Securities, told Morning Consult that the current default likely won't have a major effect on the
municipal bond market
because its effects were already «priced in» ahead of time.
Taxable
municipal bonds The interest on some
municipal bonds is taxable
because the federal government will not subsidize the financing of activities that do not provide significant benefit to the public.
And those numbers overstate the effect of
bond fund trading
because they exclude
bond trading at regional brokerages, which play a large role in the
municipal securities market.
I slowed my
municipal bond purchases
because the 10 - year
bond yield edged down to about 2.15 %, which made yields unattractive.
I buy a combination of specific
municipal bonds in California
because that's where I reside in where I can not pay state income taxes on the dividends, I also have a California
municipal Bond fund, and a nationwide muni bond f
Bond fund, and a nationwide muni
bond f
bond fund.
This is not
because the market considers them less risky than US Treasuries, but
because many
municipal bonds are considered almost as safe as treasuries AND they have a big tax advantage over treasuries.
Most
municipal bonds are considered quite safe and generate decent returns, but they vary considerably
because not all cities and local governments are created equal.
-- Retail investors buying
municipal bonds may overpay for their trades
because brokers aren't always required to disclose their commissions, according to a member of the U.S. Securities and Exchange Commission.
A few years ago, Butowsky recalls, he met with a former high - round NFL pick whose adviser, also a former player, said that he couldn't reveal how much he was charging to manage the athlete's tax - exempt
municipal bonds «
because of the Patriot Act.»
Tom Chapman, executive vice president and director of
municipal securities at Everen Securities of Chicago and manager of
bond issues for the district, said the district is able to sell
bonds without raising taxes
because they are replacing retired
bonds.
Though
municipal bonds generally offer lower interest payments compared with taxable
bonds, their overall return may be higher
because of their tax - reduced (or tax - free) status.
But let's look at a
municipal bond for instance,
because the higher the interest rate that you get from the
bond, that doesn't necessarily mean the
bond is better.
Well,
because I had a knack for finding the most unbelievable bargains when it came to
municipal bonds.
«The interesting thing is going to be the impact on the
municipal bond market
because a lot of
municipal bonds have as collateral U.S. Treasury securities.
@fennec I didn't bother discussing the risks in
municipal bonds or the smaller returns
because the OP seemed all het up more about having his «wealth out of reach» than anything else.
Investors holding
bond investments in taxable accounts often turn to
municipal bonds because of their tax advantage.
Because tax rates vary from state to state and liquidity needs vary among market participants, advisors may decide to use
municipal bond ETFs alongside individual
bonds in certain accounts.
That's
because, unlike Treasuries, which have big overseas investors,
municipal bonds are 70 % owned by individual investors like you and me who hold them until maturity.
That's
because — unlike the alphabet soup of
bonds, like CDOs and MBSs, that have been causing all the trouble in the credit markets — defaults in
municipal bonds are practically unheard of.
That's why
municipal bonds are generally considered much safer investments than corporate
bonds,
because a local government is far less likely to go bankrupt than a corporation.
They will shrink and disappear, while new guarantors, who are all currently skeptical of doing much more than
Municipal bond insurance, will grow, and make it impossible for the old guarantors to return,
because they are much better capitalized.
Municipal Bonds: Because you don't pay taxes on municipal bonds (assuming the interest earned is exempt from both state and federal tax), the rate of return can be compared directly to the debt payoff rate - no adjustment
Municipal Bonds: Because you don't pay taxes on municipal bonds (assuming the interest earned is exempt from both state and federal tax), the rate of return can be compared directly to the debt payoff rate - no adjustments ne
Bonds:
Because you don't pay taxes on
municipal bonds (assuming the interest earned is exempt from both state and federal tax), the rate of return can be compared directly to the debt payoff rate - no adjustment
municipal bonds (assuming the interest earned is exempt from both state and federal tax), the rate of return can be compared directly to the debt payoff rate - no adjustments ne
bonds (assuming the interest earned is exempt from both state and federal tax), the rate of return can be compared directly to the debt payoff rate - no adjustments needed.
Because tax - exempt interest generated by
municipal bonds is usually more beneficial for investors in higher tax brackets,
municipal bonds may not be appropriate for all investors, particularly those in lower tax brackets.
Investors in a high tax bracket might want to consider
Municipal Bond ETFs
because they can provide tax - exempt income and a steady income stream.
Less liquid corporate and
municipal bonds can have wider spreads
because the pool of potential buyers is smaller.
Municipal bonds are also often free from Federal taxes
because they are issued by local and state municipalities for infrastructure projects.
Municipal bond funds are attractive
because they pay a stream of income free from federal tax and, in most cases, state taxes for residents of the issuing state.
Once taxes are considered, a
municipal bond with a lower interest rate could pay just as much or more interest than a taxable
bond because of your marginal tax rate.
Municipal bonds continually fall into this category
because of their tax exempt status in most localities.
Yields on
municipal bonds are often lower than corporate or Treasury
bonds with comparable maturities,
because they have important tax - free advantages.
Because government entities have the power to raise taxes and fees as needed to pay the interest,
municipal bonds are generally considered to be less risky than corporate
bonds, so they typically offer lower yields.
Certain
municipal bonds are taxable
because they are issued for purposes which the federal government deems not to provide a significant benefit to the public at large.
Municipal bonds are generally free of federal tax
because the interest from
bonds issued by a state, municipality, or other local entity is exempt from federal taxation.
The
municipal bond market will likely see a reduction in supply in 2018
because of certain provisions in the new tax reform law.
When GO
Municipal Bonds Perform Well Because these bonds are typically based on a project, they tend to perform well when construction is going well and the completion remains on t
Bonds Perform Well
Because these
bonds are typically based on a project, they tend to perform well when construction is going well and the completion remains on t
bonds are typically based on a project, they tend to perform well when construction is going well and the completion remains on track.