Company: OIA
Filing Date: 2025-03-13
Form Type: 424B5
Source: 0001104659-25-023508
Chunk: 57

Company: Invesco Municipal Income Opportunities Trust
Filing Date: 2025-03-13
Form: 424B5
Chunk 57
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| ● | Converted                                                                                       
 Auction Rate Securities (CARS) are a structure that combines the debt service deferral feature  
 of Capital Appreciation Bonds (CABS) with Auction Rate Securities. The CARS pay no debt service 
 until a specific date, then they incrementally convert to conventional Auction Rate Securities. 
 At each conversion date the issuer has the ability to call and pay down any amount of the       
 CARS. Some bonds may be “callable,” allowing the issuer to redeem them before                   
 their maturity date. To protect bondholders, callable bonds may be issued with provisions       
 that prevent them from being called for a period of time. Typically, that is 5 to 10 years      
 from the issuance date. When interest rates decline, if the call protection on a bond has       
 expired, it is more likely that the issuer may call the bond. If that occurs, the Fund might    
 have to reinvest the proceeds of the called bond in investments that pay a lower rate of        
 return, which could reduce the Fund’s yield.                                                    |

S-6 Inverse Floating Rate Interests Inverse floating rate interests (Inverse Floaters) are issued in connection with municipal tender option bond (TOB) financing transactions to generate leverage for the Fund. Such instruments are created by a special purpose trust (a TOB Trust) that holds long-term fixed rate bonds sold to it by the Fund (the underlying security), and issues two classes of beneficial interests: short-term floating rate interests (Floaters), which are sold to other investors, and Inverse Floaters, which are purchased by the Fund. The Floaters have first priority on the cash flow from the underlying security held by the TOB Trust, have a tender option feature that allows holders to tender the Floaters back to the TOB Trust for their par amount and accrued interest at specified intervals and bear interest at prevailing short-term interest rates. Tendered Floaters are remarketed for sale to other investors for their par amount and accrued interest by a remarketing agent to the TOB Trust and are ultimately supported by a liquidity facility provided by a bank, upon which the TOB Trust can draw funds to pay such amount to holders of Tendered Floaters that cannot be remarketed. The Fund, as holder of the Inverse Floaters, is paid the residual cash flow from the underlying security. Accordingly, the Inverse Floaters provide the Fund with leveraged exposure to the underlying security. When short-term interest rates rise or fall, the interest payable on the Float