Company: OIA
Filing Date: 2025-05-02
Form Type: N-CSR
Source: 0001193125-25-111534
Chunk: 34

Company: Invesco Municipal Income Opportunities Trust
Filing Date: 2025-05-02
Form: N-CSR
Chunk 34
---
 move in the opposite direction of prevailing interest rates. Inverse floating rate interests in which the Trust may invest include derivative instruments such as residual interest bonds, tender option bonds or municipal bond trust certificates. Such instruments are typically created by a special purpose trust (the TOB Trust) that holds long-term fixed rate bonds, which are contributed by the Trust (the underlying security), and sells two classes of beneficial interests: short term floating rate interests, which are sold to or held by third party investors, and inverse floating residual interests, which are purchased by the Trust. Because the interest rate paid to holders of such interests is generally determined by subtracting the available or floating rate from a predetermined amount, the interest rate paid to holders of such interests will decrease as such variable or floating rate increases and increase as such variable or floating rate decrease. For additional information regarding Inverse Floating Rate Interests, see “Notes to Financial Statements.” When-Issued and Delayed-Delivery Transactions.The Trust may purchase municipal securities on a “when-issued” basis and may purchase or sell such securities on a “delayed-delivery” basis, which means that a Trust buys or sells a security with payment and delivery taking place in the future. The payment obligation and the interest rate are fixed at the time a Trust enters into the commitment. No income accrues on such securities until the date a Trust actually takes delivery of the securities. Restricted Securities.The Trust may invest up to 10% of its total assets in securities subject to contractual restrictions on resale. Rule 144A Securities and Other Exempt Securities. The Trust may invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration under the Securities Act of 1933, as amended. Zero Coupon/Pay-in-KindSecurities.The Trust may invest in securities not producing immediate cash income, including zero coupon securities or pay-in-kindsecurities, when their

| 30 |     | Invesco Municipal Income Opportunities Trust |

effective yield over comparable instruments producing cash income makes these investments attractive. Zero coupon securities are debt securities that do not entitle the holder to any periodic payment of interest prior to maturity or a specified date when the securities begin paying current interest. Pay-in-kindsecurities are debt securities that pay interest through the issuance of additional securities. Principal Risks of Investing in the Trust As with any fund investment, loss of money is a risk of investing. The risks associated with an investment in the Trust can increase during times of significant market