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 Municipal Securities |
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Description
Municipal Securities (Bonds) are debt obligations issued by states, cities, counties, and other governmental entities to raise money to build schools, highways, hospitals, other not-for-profit entities, and many other projects for the public good.
You can also purchase Insured Municipal Bonds. Bond insurance protects your investment by assuring the timely payment of principal and interest on a bond in the event the borrower is unable to meet their debt service obligations. Although bond insurance does not protect the market value of a security, insured bonds have historically retained more of their value than their uninsured counterparts during periods of financial stress.
To review a current listing of our municipal bond inventory for one of the
states listed below, click on the state of your choice:
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Benefits
This flexible investment is available in a variety of maturities so you can choose the time frame that works best for you.
If circumstances change, Municipal Bonds are actively traded in the secondary market. You are not locked in until the bond's maturity.
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Features
Income from Municipal Securities is free from federal taxes, and in some cases, it is also free from state and local taxes.
Income from interest and repayment of principal is generally regarded with a high degree of safety. Most Insured Municipal Bonds carry AAA ratings based on the claims-paying ability of the insurer and not necessarily the borrower's own creditworthiness. In addition, Insured Municipal Bonds typically have higher yields than natural AAA-rated Municipal Bonds, creating higher current income.
You receive semi-annual interest payments and get your principal payment back at maturity.
Insurers are highly regulated by state insurance departments and closely monitored by the major rating agencies.
Bond Market Association Brochures:
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Related Products/Services
Bond Ladders
Callable Bonds
Certificate of Deposit
Corporate Bonds
Convertible Bonds
High Yield Bonds
Revenue Bonds
Treasury STRIPS
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