Investment-Grade Municipal Bond

Investment-grade municipal bonds are debt securities, issued by state and local governments... Investment-grade municipal bonds are debt securities, issued by state and local governments carrying the lowest credit risk that a bond issuer may default, as determined by rating agencies Moody’s and Standard and Poor’s (S&P). To be classified as investment-grade, a municipal bond must typically be rated Baa3 or higher by Moody’s, or BBB by S&P. Typically, these bonds can form part of a conservative fixed-income portfolio. These bonds are attractive for investors who ideally don't want to see a significant decline in their investment capital, and are willing to accept a relatively lower income to achieve this goal. Interest payments tend to happen semi-annually, and are generally tax-free at the federal level. Interest payments can be also tax-free at the state level if investors are residents of the state issuing the bonds. Last Updated: 04/19/2024 View more View less

Investment-grade municipal bonds are debt securities, issued by state and local governments carrying the lowest credit risk that a bond issuer may default, as determined by rating agencies Moody’s and Standard and Poor’s... Investment-grade municipal bonds are debt securities, issued by state and local governments carrying the lowest credit risk that a bond issuer may default, as determined by rating agencies Moody’s and Standard and Poor’s (S&P). To be classified as investment-grade, a municipal bond must typically be rated Baa3 or higher by Moody’s, or BBB by S&P. Typically, these bonds can form part of a conservative fixed-income portfolio. These bonds are attractive for investors who ideally don't want to see a significant decline in their investment capital, and are willing to accept a relatively lower income to achieve this goal. Interest payments tend to happen semi-annually, and are generally tax-free at the federal level. Interest payments can be also tax-free at the state level if investors are residents of the state issuing the bonds. Last Updated: 04/19/2024 View more View less