Sentences with phrase «makes municipal bonds»

Insurance makes municipal bonds fungible.

Although this powerful combination makes municipal bonds appealing, many investors find it challenging to navigate the large and fragmented municipal market.

Despite typically offering lower coupon rates than other forms of taxable bonds, for many investors the tax benefits alone make municipal bonds an attractive prospect.

Otherwise, buying out of state municipals issued by a state with no income tax would still make the municipal bond income subject to my resident state's income tax.

Not exact matches

Buffett lamented in 2010 that he didn't buy more corporate and municipal bonds during the credit crisis when yields made the securities «ridiculously cheap» compared with U.S. Treasuries.

This environment makes credit research and a focus on quality extremely important when structuring a municipal bond portfolio.

Comments: Eliminates advance refunding for municipal bonds by making interest on advance refunding bonds taxable.

I slowed my municipal bond purchases because the 10 - year bond yield edged down to about 2.15 %, which made yields unattractive.

AGI excludes certain types of income received (e.g., municipal bond interest, most Social Security income) or payments made (e.g., alimony paid, IRA deductions, moving expenses).

Three others could also boost income: counting municipal bonds as liquid, or easy - to - sell, assets; requiring less debt that won't have to be paid back if a bank fails; and making it easier to comply with post-crisis rules.»

But even with these changes, the following five reasons explain why municipal bonds may still make sense for many investors, not just the rich:

Once you know that you can make an informed decision as to whether you will earn a higher return from a tax free state or national municipal bond fund or a taxable bond fund of a similar credit quality and average maturity (which is generally going to provide higher before tax returns) is going to be better for you.

But after considering the impact of taxes, the taxable - equivalent yield (the return required on a taxable bond to make it equal to the return of a tax - exempt bond) of municipal bonds was a full percentage point higher, at 3.75 %, for investors in the highest (37 %) tax bracket.

One thing to note is that there may be a long term capital gains tax on the profits you make from your zero coupon municipal bond depending on what price you bought it compared the the original issue discount price.

«Removing this exemption makes it far more difficult to incentivize individuals to invest in municipal bonds and, in turn, for cities to finance our infrastructure.»

Miner also asked Katko to make sure any tax reform plan preserves the tax - exempt status of municipal bonds, which helps cities finance their infrastructure projects.

If only Maine could make Merrill and municipal bond insurer MBIA hoist Mainsail II.

A rule of the federal Municipal Securities Rulemaking Board (MSRB) prohibits bond work from going to financial firms that make campaign contributions to public officials who control bond decisions.

The comptroller is responsible for auditing the performance and finances of city agencies, making recommendations regarding proposed contracts, issuing reports on the state of the city economy, marketing and selling municipal bonds, and managing city debt.

Last year, she made no secret of studying the potential for municipal bankruptcy, even when it scared Wall Street bond ratings agencies.

(Yet, at today's low interest rates for municipal bonds, this would be the perfect time to borrow the money to make that investment.)

The stars aligned in spectacular fashion for the municipal bond market in 2014: Low supply amid solid demand, improving fiscal conditions among state and local issuers, and a broad drop in interest rates (and rise in bond prices) helped make munis one of the top - performing fixed income asset classes of the year.

But after considering the impact of taxes, the taxable - equivalent yield (the return required on a taxable bond to make it equal to the return of a tax - exempt bond) of municipal bonds was a full percentage point higher, at 3.75 %, for investors in the highest (37 %) tax bracket.

In making the initial decision to purchase a tax - exempt bond you should calculate the taxable equivalent yield to determine if municipals are the right fixed - income investment for your own situation.

Of course, Financial Samurai makes the case for buying bonds (specifically California municipal bonds, in his case).

Many institutions woven into the fabric of daily life were made possible by municipal bond issuance.

Municipal bonds are typically structured to make regular, specified interest payments and then return the principal amount at maturity.

Municipal bond funds saw outflows of $ 372 million this week, making this the second week of outflows in a row.

Features The Diversity of Municipal Bonds and What You Need to Know About Risks The bond market is split between traditional secure securities and those that are riskier, such as bonds tied to private profit - making or nonprofit borroBonds and What You Need to Know About Risks The bond market is split between traditional secure securities and those that are riskier, such as bonds tied to private profit - making or nonprofit borrobonds tied to private profit - making or nonprofit borrowers.

Unlike corporate bonds or municipal bonds, Treasuries are considered to have a zero chance of default; markets assume that the U.S. will always make good on its financial obligations.

The comparison makes no allowance for the potential impact of reduced long - term capital gains and qualified dividend tax rates, nor of the potential tax exemption for some municipal bonds held in taxable accounts.

,» Peter Hayes looks at how «made - in - the - USA» municipal bonds might offer some insulation...

It would almost never make sense to buy a municipal bond fund in an IRA.

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.

Another variation of the VFSTX bond listed above is the Vanguard Limited Term Tax Exempt Investor which makes investments in bonds of municipal bodies.

If an investor had a portfolio consisting of just municipal or government bonds yielding 5 % per year and a portfolio made up of highly volatile and risky tech stocks also yielding 5 % per yield, the «better» portfolio would be the one with the municipal one.

To reduce your risk, consider U.S. treasuries (which are generally considered perfectly safe), municipal bonds (state and local government bonds considered very safe), or a diversified mutual fund made up of many bonds.

We think a look at a popular active New York municipal bond fund compared to an S&P Dow Jones index makes this point clear.

A separate difference between municipal bond ETFs and mutual funds is that ETFs trade on an exchange, allowing investors the liquidity to make intra-day trades.

In the credit markets, U.S. municipal bonds tracked in the S&P Municipal Bond Index have returned over 1.5 % in June as the diversity, yield, historical stability and quality of the municipal bond market has made it a «risk off» destination assmunicipal bonds tracked in the S&P Municipal Bond Index have returned over 1.5 % in June as the diversity, yield, historical stability and quality of the municipal bond market has made it a «risk off» destination assMunicipal Bond Index have returned over 1.5 % in June as the diversity, yield, historical stability and quality of the municipal bond market has made it a «risk off» destination asset clBond Index have returned over 1.5 % in June as the diversity, yield, historical stability and quality of the municipal bond market has made it a «risk off» destination assmunicipal bond market has made it a «risk off» destination asset clbond market has made it a «risk off» destination asset class.

This means municipal bonds can effectively be tax free, but make sure to check with your tax advisor on specific bonds and local tax laws.

Even with a slip of 3 bps to the cheaper since month end, the high yield municipal bond market tracked by the S&P Municipal Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthlmunicipal bond market tracked by the S&P Municipal Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly retbond market tracked by the S&P Municipal Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthlMunicipal Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly retBond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly return.

The vast swath of the municipal bond market tracked by the S&P Municipal Bond Index makes this analysis municipal bond market tracked by the S&P Municipal Bond Index makes this analysis possibond market tracked by the S&P Municipal Bond Index makes this analysis Municipal Bond Index makes this analysis possiBond Index makes this analysis possible.

Yields of investment grade municipal bonds have now fallen to levels that in relative terms make them «rich» to corporate bonds.

To make a fair comparison between the two asset classes indices were selected that have comparable weighted average modified durations: S&P National AMT - Free Municipal Bond Index and the S&P 500 5 - 7 Year Investment Grade Corporate Bond Index.

While traditional and zero - coupon municipal bonds are an attractive investment for many due to the tax savings, it is vital that you understand the potential tax liabilities prior to making a purchase.

They use index funds or ETFs except in certain asset classes, such as emerging markets or municipal bonds, in which they think an active manager can make a difference.

Like the schools and bridges and levees they make possible, municipal bonds are built of strong stuff.

For these investors, I graciously concede that owning municipal bonds in their taxable account makes sense.

Even if the underlying entity goes bankrupt, the insurance company will pay back investors, making these types of municipal bonds significantly safer.