Diversification is critical to any portfolio’s long-term growth. A good diversification plan includes low-risk investments, such as municipal bonds, or “munis”. Municipal bonds are debt instruments issued by government agencies, such as cities and counties, and are rated just the same as any corporate bond. However, with municipal bonds, you may get an added bonus [...]
Investors who are interested in keeping a portion of their investment portfolio allocated into lower risk often choose municipal bonds or private activity bonds. Investing in private activity bonds or other revenue bonds issued by a governing agency typically arrive with a better than average rating, offering a safe investment for diversification. What Are Private [...]
As an intelligent part of a diversified investment portfolio, municipal bonds provide you with consistent, low-risk returns. Investing in municipal bonds, also known as “munis,” provides you with a tax-free income stream, as well as a place to preserve your capital in a tax-exempt instrument. Of course, a municipal bond investment is not a way [...]
No matter what your age or wealth status, it is always wise to continually diversify your investment portfolio. A portion of your allocation should always be in lower risk investments. However, lower risk means lower yield as well, right? Not if you invest in high yield municipal bonds! What are High Yield Municipal Bonds? Municipal [...]
Bond convexity is a complex and advanced bond concept to help investors understand and visualize the changes in yield of a bond. Bonds are debt instruments issued by municipalities or private corporations in order to raise capital for specific projects. When a city wants to build a new bridge, the government will issue a municipal [...]