Who Issues Municipal Bonds?

Municipal bonds can be a great way to invest that will provide you with tax-free returns. Municipal bonds are issued by municipalities in order to raise funds for a particular project. The municipalities will pay tax-free interest to the investors and eventually will give them back their initial investment. The interest rates are usually low, but when you factor in the fact that you do not have to pay taxes, they can be worthy investments. 

Who Issues Municipal Bonds?

  • City governments 
  • County governments 
  • State governments 
  • Public universities 
  • Private universities 
  • Airports 
  • Not-for-profit hospitals 
  • Public power plants 
  • Water and sewer administrations
  • Bridge and tunnel authorities
  • Housing authorities
  • Research foundations
  • Various nonprofit organizations.

Setting Up Municipal Bonds

Any government or public agency that is deemed to serve the public good can set up municipal bonds. In order to issue municipal bonds, the agency has to clear the process with the SEC and the IRS. As long as both of these entities agree on the bonds, the agency can go ahead and issue them. 

blog comments powered by Disqus