Sentences with phrase «of municipal bonds»

The corporate bond sector of the municipal bond market has historically been one of the sectors where bonds have a higher propensity to default.

To answer that question, I added two more columns, each showing the tax - equivalent yield of the municipal bonds yielding 2 %, but at different tax rates.

If you buy shares of a municipal bond fund that invests in bonds issued by other states, you will have to pay income tax.

There are three different types of municipal bonds which can be issued by a state or local government.

Interest rate risk Like all fixed income securities, the market prices of municipal bonds are susceptible to fluctuations in interest rates.

To find out if you will, let's explore the basics of municipal bonds.

There is a vast number of municipal bond issues out there, from thousands of different issuers, and very few of them will change hands on any given day.

The tax exemption of municipal bond interest is a key draw for issuers.

In addition, you may be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and «market discount» taxed at ordinary income rates.

As the prices of the municipal bonds in a fund portfolio adjust to a rise in interest rates, the fund's share price may decline.

First, the real value of the municipal bond insurance was not for credit enhancement.

The benefit of municipal bonds is highly dependent upon your other income and tax rates.

The tax - exempt status of municipal bonds does not extend in all instances to the alternative minimum tax.

The ten year maturity range of the municipal bond market has seen a nice rally.

There are two primary types of municipal bonds which are referred to as general obligation and revenue bonds.

To understand how zero coupon municipal bonds work, it is important first to become acquainted with the principal characteristics of both municipal bonds and the zero coupon structure.

Such changes can affect the tax treatment of municipal bonds.

A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax.

Most of the municipal bonds offer tax benefits to its holders like government bonds do.

I am not sure what happens if one state does not pay, aside from being shut out of the municipal bond market.

By most measures, the yields of municipal bonds remain higher than the historical trend.

I always say to follow the smart money, and in the case of municipal bonds, it's clear the smart money has spoken.

The «belly» of the municipal bond curve or the 5 — 10 year maturity range has done well this year, almost as well as the longer maturity range.

Understand how the addition of municipal bond mutual funds can enhance a portfolio, and learn the top - rated municipal bond funds to consider for 2016.

Unlike corporate bonds, the governmental nature of municipal bonds lowers the risks associated with them, but it is still potentially possible for a municipality to go bankrupt and default on a bond.

The bond disclosures enable potential buyers of municipal bonds to assess the risks of investing.

There is no guarantee that after - tax returns of municipal bonds will be greater than those of taxable investments.

This means that you're able to buy $ 1,000 worth of municipal bonds for $ 950, $ 900, even $ 850.

It is a dirty secret of the municipal bond fund industry that these funds are marketed on the basis of yield.

But even in the depths of the great depression, defaults of municipal bonds remained relatively low.

But it will all depend on the amount you have to invest, the interest rates of the municipal bonds you buy and how consistent the rates are paid.

The least you can spend on buying a unit of municipal bonds is five thousand dollars.

The composition of the municipal bond market is heavily weighted with short duration bonds.

Oh, and as an aside, think of Municipal bonds, because they are the only fixed income asset class that the flood of foreign liquidity hasn't touched.

Beyond the improvements in the fundamentals of the municipal bond market, municipal bonds also look more attractive due to the higher capital gains taxes in 2013.

In the past 50 years, less than one percent of the hundreds of thousands of municipal bonds issued have gone into default.

The next level of sophistication involves the creation of a municipal bond ladder.

There are also two varieties of municipal bonds to consider when you're thinking about buying.

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

In particular, she noted her expectations for the future of the municipal bond market which included hundreds of billions of dollars in defaults within the next five years.

The not - so - secret charm of municipal bonds is their tax exempt status.

Additionally, I have served as an officer of associations of investors, financial advisors, and committees of municipal bond counsel.

I have been an active member of national associations of municipal bond issuers, investors, counsel and financial advisers.

Pricing is likely to be somewhere between a comparable corporate bond and the tax - equivalent yield of a municipal bond.

You may also be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and «market discount» taxed at ordinary income rates.

The hard truth: Lower individual tax rates reduce the value of a municipal bond's tax exemption.

The fourth quarter was dominated by tax reform and its effects on the supply and pricing of municipal bonds.

To learn more about the benefits of municipal bonds, contact an investment professional or thoroughly research them yourself before investing your money.