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  • Municipal bonds are bonds issued or backed by state and/or local governments to finance a variety of public improvement projects. When you invest in municipal bonds, you are loaning money to these issuers who in turn pay you a regular interest income. Your investment may help fund the building of a bridge that assists the flow of local traffic, a new school, or other enhancements to your community.
  • What does municipal bond offerings mean? Municipal bond offerings refer to the act of issuing municipal bonds by state, cities, towns or municipalities. When a state, city, town or municipality needs to raise money for a project, it can issue bonds to the public or make municipal bond offerings.
  • Like any other bonds, when buying municipal bonds, you will have to consider the municipal bond rates. Some municipal bond rates are better than others. However, when considering and comparing municipal bond rates to other bond rates, you should take into account the tax benefits of municipal bonds.
  • The municipal bond interest rates are also called the coupon rates. Municipal bond interest rates are usually what people look for when buying municipal bonds. However, bear in mind that the highest municipal bond interest rates does not mean the best investment or the highest municipal bond yields.
  • Municipal bond yields are a little more complicated to calculate than corporate bond yields. Below are different municipal bond yields explained with examples. Bear in mind that because of the tax benefits of municipal bonds, municipal bond yields will always be less than the equivalent corporate bond yields.
  • To compare the municipal bond yields and corporate bond yields, you need to work out the tax equivalent yield of the municipal bond. The tax equivalent yield calculation of a municipal bond is useful when an investor wants to compare a municipal bond to a corporate bond to see which bond has higher yield and is therefore a better investment.
  • General obligation bonds are common municipal bonds. General obligation bonds are sometimes called general obligation issues or GOs. Many investors invest in general obligation bonds without even knowing that they are general obligation bonds or general obligation issues.
  • Most people have heard of municipal bonds but few people have heard of municipal notes. Municipal notes are shorter term investments than municipal bonds. In the same way there are municipal bond ratings, there are municipal note ratings published by bond rating agencies to help investors decide which municipal notes are good investments for them.
  • Below is a complete explanation of municipal bond ratings. There are two major municipal bond ratings agencies. They are Moody's Investors Service and S&P which stands for Standard & Poor's. The two respective municipal bond ratings are called Moody's Municipal Bond Ratings and S&P Municipal Bond Ratings or commonly known for short as Moody's Ratings and S&P Ratings.
  • Below is the Municipal Bond ratings table which shows Moody's ratings and S&P ratings for municipal bonds. Moody's municipal bond ratings range from Aaa which is the best of quality to Baa which represents medium grade municipal bonds. S&P municipal bond ratings range from AAA which is the best to BBB.
  • When buying municipal bonds, it is important to look at the municipal bond ratings chart and even more importantly you need to understand the meaning of ratings of municipal bonds. The two major municipal bond rating agencies are Moody's and S&P. See Moody's Ratings and S&P Ratings for municipal bonds for different ratings compared.
  • The municipal note ratings are slightly different from municipal bond ratings. Municipal note ratings are not as common and you usually don't see them around unless you specifically are looking for municipal notes. Municipal note ratings are based on the quality of the notes and the ability of the municipal issuer to pay back the principal and interest.