municipal bond market


Bonds issued by local government agencies to finance long term capital projects for the city or town. Most municipal bonds are issued with minimum denominations of $5,000, and consist of two main types: general obligation bonds and revenue bonds. General obligation bonds are normally approved by the voters, and are secured by the faith and credit of the issuer themselves, while revenue bonds are issued by special authorities to finance public projects like airports, hospitals, bridges, toll roads or water and sewage treatment facilities.
Interest income received by municipal bond holders is generally federal income tax exempt, as well as state income tax exempt in the state the bonds are issued.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Bond Buyer Index municipal over bond (MOB) spread