Home > Blossary: Municipal Bonds
The terms you should know before investing into a municipal

Category: Education

8 Terms

Created by: Timmwilson

Number of Blossarys: 22

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As it sounds, a revenue bond is backed by the revenue generated from a specific project. These projects can vary, but always are some type of structure such as a toll-road, or any other revenue ...

Domain: Financial services; Category: Stocks & securities

A general obligation bond is debt issued by the municipality, and is backed by the credit of the issuing party. They are trusted under the assumption the municipality will be able to repay through ...

Domain: Financial services; Category: Stocks & securities

There are 2 basic passive bond buying strategies. First is the classic purchase of a bond, and hold it till it matures. Second, slightly more involved is using a 'bond ladder'. This strategy involves ...

Domain: Financial services; Category: Personal investment management

Not necessarily a bad thing. Call risk is when the issuer decides they want to buy back all or a portion of the bond before the maturity date. The investors capital is repaid with an additional ...

Domain: Financial services; Category: Personal investment management

Interest rates for municipal bonds, for the most part, is a fixed rate, not a floating rate with the market. This means that the rate of interest received is fixed for the duration of the bond till ...

Domain: Financial services; Category: Personal investment management

This is a risk present when a issuer of debt is unable to either make interest payments on time, or is unable to pay back the principle of the investment. To evaluate whether your municipal ...

Domain: Financial services; Category: Personal investment management

Municipal bonds, being investments into local governments, are not risk free. Although you can conserve capital and receive payments at a tax free rate, the following are risk factors present with ...

Domain: Financial services; Category: Personal investment management

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