Scared of buying corporate bonds? Not interested in federal government debt? Maybe it’s time to give the local government a try.
Municipal bonds, often referred to as “munis,” are issued by government entities at the state or local level. Munis have been used to finance construction of projects such as highways, schools and hospitals.
They have also been used to pay for stadiums like Nationals Stadium in Washington DC (pictured at left) and the new Yankee Stadium in New York.
When looking at municipal bond rates, you will most likely see rates lower than corporate bonds.
However, much like corporate issues, municipal bond issues have …read more

The SEC met yesterday in a Credit Rating Agencies Roundtable to discuss the oversight of credit rating agencies with the goal of providing investors increased accessibility to all credit ratings for municipal bonds.
Municipal Securities Rulemaking Board (MSRB) supports the effort, believing that retail investors would benefit from clearer articulation of the considerations used in the ratings process, increased transparency in that process, and the disclosure or elimination of potential conflicts of interest.
According to the MSRB, the reasons for increased oversight include:

The municipal bond market is dominated by retail investors and credit ratings are an important indicator of credit quality.
Recent bond insurer and …read more

What many don’t understand is that the interest earned on savings accounts is taxable. And so are the capital gains on some municipal bonds.