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Taxable Municipals

Municipal Bonds are generally thought of for their tax-free characteristic, but there is a small segment of the muni market that is made up of taxable municipal bonds! This includes bonds that were issued under The Build America Bonds (BABs) and have 35% of their interest payments guaranteed by the federal government. Interest income earned from taxable munis is subject to Federal income taxes.

The market for taxable munis is smaller and less liquid than the market for tax-frees, which make up the majority of munis. But the yields on high-grade taxable munis tend to be attractive when compared to other high-grade taxable bond investments. For those times when investors can buy-and-hold a bond to maturity and they need taxable income, taxable municipal bonds may be worth considering.

Click for Taxable Municipals PDF

If your portfolio is greater than $500,000, Sharon Alister can provide a free analytic review to help ensure that your portfolio is in line with your investment goals. Call Sharon Alister at (800) 745-7110 or email info@AlisterTalksBonds.com

 

Interest Rates (Indications only)

Please note the rates for Ins’d and Pre-Res are not available from Bloomberg and will be updated as soon as possible.

Treasuries AAA Munis
3mo 1.815 N/A
6mo 2.009 N/A
1yr 2.237 1.74
2yr 2.482 1.87
5yr 2.809 2.19
10yr 2.970 2.53
30yr 3.145 3.14
today's rates chart

AAA Rated Munis

Pre-Res Ins’d Pure*
2 yr 1.91 2.05 1.87
5 yr 2.23 2.49 2.19
10 yr N/A 2.89 2.53
15 yr N/A 3.20 2.82
30 yr N/A 3.50 3.14

*Rated AAA on its own
Source: Bloomberg

Taxable Municipals

Municipal Bonds are generally thought of for their tax-free characteristic, but there is a small segment of the muni market that is made up of taxable municipal bonds! This includes bonds that were issued under The Build America Bonds (BABs) and have 35% of their interest payments guaranteed by the federal government. Interest income earned from taxable munis is subject to Federal income taxes.

The market for taxable munis is smaller and less liquid than the market for tax-frees, which make up the majority of munis. But the yields on high-grade taxable munis tend to be attractive when compared to other high-grade taxable bond investments. For those times when investors can buy-and-hold a bond to maturity and they need taxable income, taxable municipal bonds may be worth considering.

Click for Taxable Municipals PDF

If your portfolio is greater than $500,000, Sharon Alister can provide a free analytic review to help ensure that your portfolio is in line with your investment goals. Call Sharon Alister at (800) 745-7110 or email info@AlisterTalksBonds.com

 

Interest Rates (Indications only)

Please note the rates for Ins’d and Pre-Res are not available from Bloomberg and will be updated as soon as possible.

Treasuries AAA Munis
3mo 1.815 N/A
6mo 2.009 N/A
1yr 2.237 1.74
2yr 2.482 1.87
5yr 2.809 2.19
10yr 2.970 2.53
30yr 3.145 3.14
today's rates chart

AAA Rated Munis

Pre-Res Ins’d Pure*
2 yr 1.91 2.05 1.87
5 yr 2.23 2.49 2.19
10 yr N/A 2.89 2.53
15 yr N/A 3.20 2.82
30 yr N/A 3.50 3.14

*Rated AAA on its own
Source: Bloomberg

Investing involves risk, including possible loss of principal. When investing in bonds, it is important to note that as interest rates rise, bond prices will fall. Conversely, as interest rates fall, bond prices will rise.

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