MunicipalBonds.com (2024)

We are providing certain data supplied to us by the Municipal Securities Rulemaking Board ("the Service") without warranties or representations and on an "as-is" basis. WE HEREBY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES (EXPRESS OR IMPLIED), BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE REGARDING THE SERVICE. You shall bear all risk, related costs and liability and be responsible for your use of the Service.

The transaction data provided through the Real-Time Transaction Subscription Service represents municipal securities transaction data made available by brokers, dealers, and municipal securities dealers to the MSRB and related information. Such transaction data and/or related information may not exist for all municipal securities and may not be required to be submitted to the MSRB for certain types of municipal securities transactions. The MSRB does not review transaction data submitted by submitters for accuracy, completeness or any other purpose, and does not warrant or guarantee the accuracy of any such transaction data and/or related information.

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MunicipalBonds.com (2024)

FAQs

How often do municipal bonds fail? ›

The Default Risk of Municipal Bonds

From 1970-2022, the default rate on munis was 0.08%. That means 99.92% of municipal bonds paid their interest and principal as agreed. That's an incredibly low default rate. By comparison, the Treasury default rate was 0%; that's the gold standard.

What is the downside of tax-free municipal bonds? ›

Cons. Market prices could tank: If interest rates go up, the market prices of existing bonds will go down. That means you could have to sell your bond at a loss. Not inflation-friendly: Municipal bonds don't hold up against inflation as well as stocks do.

Is now a good time to invest in municipal bonds? ›

We continue to have a favorable view of munis due to high attractive yields and generally favorable credit conditions. There may be bouts of volatility during the second half of the year largely due to the election.

Which is better, municipal bonds or treasury bonds? ›

Taxable-equivalent yield comparisons

has the highest yield. The Treasury bond has the second-lowest yield and is exempt from state and local income taxes. The California municipal bond is fully exempt from all income taxes for residents of that state.

Why am I losing money on municipal bonds? ›

Municipal bonds, like all bonds, pose interest rate risk. The longer the term of the bond, the greater the risk. If interest rates rise during the term of your bond, you're losing out on a better rate. This will also cause the bond you are holding to decline in value.

What happens to municipal bonds when interest rates drop? ›

Thus, when interest rates rise, a bond's price usually declines because an investor can earn a higher yield with another bond. Conversely, when interest rates fall, the bond's price usually rises. Duration is a measure of how much the price changes as a result of this risk.

What is the safest type of municipal bond? ›

GO bonds are usually considered safer than revenue bonds, as a municipality can raise taxes to cover outstanding debt obligations. In contrast, revenue bonds are subject to the earnings made by that particular project.

Which state has the best municipal bonds? ›

Quick Look at the Best Municipal Bonds:
  • Nuveen High Yield Municipal Bond Fund.
  • Texas Bonds.
  • Washington Bonds.
  • New York Bonds.
  • Florida Bonds.
  • Georgia Bonds.
Jul 23, 2024

What are the highest paying municipal bonds? ›

High Yield Municipal Bond Funds
NameSEC 30-Day YieldTotal Return 1 Year
American Century High-Yield Muni A AYMAX3.87%10.10%
American Century High-Yield Muni C AYMCX3.10%9.28%
American Century High-Yield Muni I AYMIX4.33%10.60%
American Century High-Yield Muni Inv ABHYX4.13%10.37%
21 more rows

What will municipal bonds do in 2024? ›

Municipal bond gross supply is expected to total around $450 billion in 2024, up meaningfully from $330 billion in 2023. However, with approximately $400 billion of bonds maturing in 2024 and significant coupon payments, supply will likely be net neutral.

Do municipal bonds do well in a recession? ›

The short answer is bonds tend to be less volatile than stocks and often perform better during recessions than other financial assets.

What is the average return on municipal bonds? ›

The current yield is ~4.27%. An investment with $1 million par value (~$1.02 million market value with accrued interest) will generate a federally tax-exempt annual coupon cash flow of ~$43,125. According to The Bond Buyer, $7.8 billion in new issuance is expected to come to market this week.

What are the disadvantages of municipal bonds? ›

However, municipal bonds are not without their drawbacks. They typically offer lower yields compared to corporate bonds and stocks. This means that investors may earn less income from their investments. And like all bonds, munis are subject to interest rate risk.

What happens when a municipal bond matures? ›

In contrast, unless the issuer defaults in the payment of principal, an investor that holds the bond to maturity rather than selling it in the secondary market would receive the full par amount of the bond at maturity regardless of any changes in market value.

What happens when a municipal bond defaults? ›

In the event of a default, bondholders seldom lose all of their principal value of the bond. Often, a default could result in the suspension of the coupon payment. Defaulted bonds can become speculative as they can be purchased fairly cheaply.

How risky are municipal bond funds? ›

Municipal bonds are often considered a safe investment; however, the return of principal and interest is not guaranteed. In fact, some municipal bonds, such as high yield municipal bonds, may be risky. Investors need to review the specifics of the bonds they are considering or already own to evaluate their risk.

Have any municipal bonds ever defaulted? ›

The most infamous default cases involving general obligation bonds include New York City's default in 1975 and Cleveland in 1978. The largest default in the history of the municipal bond market was the Washington Public Power Supply System's (WPPSS) default on $2.25 billion in bonds.

Are municipal bonds safe in a recession? ›

The short answer is bonds tend to be less volatile than stocks and often perform better during recessions than other financial assets.

What is the recovery rate for municipal bonds? ›

– The average recovery rate on defaulted municipal bonds has been 66% of par, compared to 42% of par for defaulted corporate bonds. General obligation (GO) and essential service revenue bonds have been particularly safe investments.

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