Municipal Bond

A municipal bond is a bond issued by an American county, city, publicly owned airport, seaport, school district, or utility. The bonds are issued to improve the said cities or counties, or are tied specifically to a project within a county or city. Therefore, the bonds are backed by the county, city, or specific project. One general aspect of municipal bonds that makes them attractive is that they provide income with great tax benefits. Usually, municipal bonds are completely exempt from Federal taxes. Municipal bonds trade in the bond markets much like most of the other major bonds in the U.S.


Municipal bond investors beware! On June 14, it was announced that Detroit will not make a $39.7-million payment on unsecured municipal bonds worth $2.0 billion. This makes Detroit the most populated city to default on its debt, after Cleveland, since…

I’ve been writing in Profit Confidential about the spree of bankruptcies in cities across the U.S. While the majority of them are in California, cities across America have been getting their credit ratings slashed. In the second quarter of this…

I've been talking for some time about U.S. municipalities and their budget deficit problems. Just recently, I cited a Moody’s Investor Services study that highlighted how the number of bankruptcies has doubled in the last two years after remaining steady…

While the U.S. economy is apparently improving (at least that’s what the media has been telling us), there are more municipalities defaulting on bond payments and facing widening budget deficits. Moody’s Investors Services just released a study on the municipal…