5 Ways to Buy a Muni Bond

1. Use the services of a broker-dealer or a bank department that is a municipal securities dealer.
2. Hire an investment adviser who can locate and trade bonds on your specific instructions or general authority.
3. Trade directly online through a self-managed account.

Are muni bonds a good investment today?

Investing in municipal bonds is a good way to preserve capital while generating interest. Most of them are exempt from federal taxes, and some are tax-free at the state and local level as well. 1 Municipal bonds, also called munis, help build infrastructure in your area.

Where is the best place to buy municipal bonds?

Also, credit ratings on muni bonds tend to be higher than on corporate bonds. You can buy municipal bonds in several different ways. Depending on the level of involvement you wish to have in your purchase, you can go through a broker-dealer or a bank that’s also a municipal securities dealer.

Can a junk bond be sold as a municipal bond?

Underwriters have taken advantage of this misconception to peddle junk debt issues labeled as municipals which could never be sold without the aura of a municipal authority. Yes, the offering statements usually make this all clear because they know that investors won’t read them.

What are the benefits of municipal bonds in India?

Municipal bonds that are issued to the public are rated by renowned agencies such as CRISIL, which allows investors transparency regarding the credibility of the investment option. In India, municipal bonds are exempted from taxation if the investor conforms to certain stipulated rules.

Who are the rating agencies for municipal bonds?

There are three major credit ratings agencies — Standard & Poor’s (S&P), Moody’s and Fitch — all of which rate the issuers of municipal bonds based on their ability to meet their financial obligations. This makes it easier for investors to evaluate risk.