Municipal bonds are issued in a variety of types and for different purposes by states, state agencies, counties, cities, school districts and other governmental agencies entitled to issue such debt. Not for profit organizations such as hospitals are also entitled to issue tax-free bonds. An investor purchasing a municipal bond is loaning money to the issuer, much like when a bank loans money to homebuyers, to finance a particular project. An issuer gives the investor its bond evidencing its promise to repay the money and details the rate at which interest will be paid, when the issuer may retire the bond prior to maturity, the name of the interest paying agent. Usually a legal opinion is printed on the bond, issued by bond counsel indicating that the bonds are legally issued and that the interest received is exempt from federal income tax.
Municipal bonds are available in a wide range of maturities, quality ratings and purposes.
Our on line municipal bond inventory allows you to create a customized list of recent offerings.