We’ve all borrowed money, whether it is to purchase our first car, house or even the extension on our home. Now put that into the perspective of a corporation or government – where do their loans come from? Just like us they sometimes require capital to finance a new project or expand into new markets, [...]
A private purpose bond is one of the two types of municipal bond separated by The Tax Reform Act of 1986. The other type of municipal bond is a public purpose bond which differs quite considerably to the former. The key feature of a private purpose bond is that they are solely used to help [...]
A municipal bond fund is essentially a mutual fund investment in a municipal bond (i.e. “munis”). As we have already covered, municipal bonds are debt securities issued by a municipality, country or state to fund its capital expenditures. The reason why these types of bonds are so popular with investors who have high incomes is [...]