Sentences with phrase «because municipal bond»

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 fBond fund, and a nationwide muni bond fbond 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 adjustmentMunicipal 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 neBonds: 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 adjustmentmunicipal 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 nebonds (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 tBonds 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 tbonds are typically based on a project, they tend to perform well when construction is going well and the completion remains on track.
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