Wed, Nov 16th 2022. Tiffany earned a finance and management degree from The Wharton School of the University of Pennsylvania. How can investors decide which bond best suites their portfolio? that grow their overall wealth faster, even without the tax benefits. The investor expects to receive interest or coupon payments (usually semiannually) and the initial principal back when the bond matures, or when the loan term ends. << /Filter /FlateDecode /S 519 /O 604 /Length 498 >> You can buy individual muni bonds or muni funds through an online broker, and many robo-advisors offer munis as part of their portfolio mix. Verify your identity, personalize the content you receive, or create and administer your account. "I like muni bonds as a place for clients to park their money," said certified financial planner Jordan Benold, partner at Benold. The MSRB accepts no responsibility for the accuracy of the reproduction of the Service or that Service is current. Inflation risk. Calculating the TEY on municipal bonds is a key element of determining whether they make sense for your investment portfolio over other taxable bonds. Generally, the interest on municipal bonds is exempt from federal income tax. But after those, muni markets did see solid performance with strong investment returns, particularly in 2014, in 2017, and 2019. In addition, interest income earned from these securities . Welcome to MunicipalBonds.com. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. So if interest rates go up, bond prices come down, and vice versa. Rising interest rates and . Does it look more like a legitimate investment opportunity or an investment scam? In general, each bond must be of investment grade quality before it is insured, and it must meet additional criteria based on the bond structure and other factors. , also known as ETFs, can make sense. Tiffany Lam-Balfour is a former investing writer and spokesperson at NerdWallet. Information related to a security's tax-exempt status (federal and in-state) is obtained from third parties, and Schwab does not guarantee its accuracy. Short-term bonds mature in one to three years, while long-term bonds wont mature for more than a decade. It seems like their performance has been worse in many cases. Voters pass public safety, park improvement bonds Also on the municipal ballot this year were two bond referendums. You might recall headlines about defaults in Detroit in 2014 and Puerto Rico in 2018. , corporate bonds and other fixed-income securities since they all have different risk and reward profiles. 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. When Quantitative Tightening Leads to a Bank Failure in California. Start now! Municipal bonds (or munis for short) are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems. One benefit is accessing a well-diversified portfolio of bonds from municipalities with different credit ratings, a range of projects and bond types, and varied risk and return. "Treasury yields extend plunge, with 2-year rate heading for biggest three-day decline since 1987", Barron's. 5.000%: 2030-Sep: 2.451 - 2.470 3-Long Is Pwr Auth N Y Elec Sys Rev Taxable Iam Coml Paper Nts 3/a2 Ser 2015 Gr-1a Coml Paper Iam 271 If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Given GO bonds' perceived security advantage, revenue bonds used to yield much more than GO bonds on averagebut that has changed in recent years, as illustrated in the chart below. Disclaimer: NerdWallet strives to keep its information accurate and up to date. 2023Charles Schwab & Co., Inc.All rights reserved. "Other" includes industry development revenue (IDR)/pollution control revenue (PCR), pre-refunded revenue bonds, housing, tobacco, and resource recovery. Many investors buy municipal bonds to hold them rather than to trade them, so the market for a particular bond may not be especially liquid and quoted prices for the same bond may differ. U.S. interest rates have been low for some time. Usage will be monitored. Foos: Right. xcbd`g`b``8 ":@$N/@4(= R{"j }"C@>@lLl8J 'FF But then this was all unfolding at the same time investors were growing concerned about the economic impact of the coronavirus and what that'll do be in the short term and the long term on some muni issuers. Read our latest Investor Alert to learn about potential risks associated with self-directed Individual Retirement Accounts. If they move higher, investors who hold a low fixed-rate municipal bond and try to sell it before it matures could lose money because of the lower market value of the bond. So, we saw some selling there. Real-time data on all CUSIPs, the latest muni bond news, the ins and outs of bond investing and track your municipal bond portfolio at the Premier site for Municpal bond investors. A crash is a sudden and significant decline in the value of a market. Additionally, the Municipal Securities Rulemaking Board, a regulatory body, maintains a, website with disclosure documents, pricing data and other information, Similar to other fixed-income counterparts, muni bonds generally have an inverse relationship with interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Prospects the Fed may halt its rate hikes next week likely fed the equity market rebound. However, its accuracy, completeness or reliability cannot be guaranteed. A securities salesperson must be properly licensed, and, depending on the type of business the firm conducts, his or her firm must be registered with the MSRB and with FINRA, the SEC or a state securities regulator. Finance. These funds tend to have relatively stable share prices, and higher than average yields. But the big. Gold prices also surged as investors flocked sought safety in the wake of the failures of Silicon Valley Bank and New York's Signature Bank. Some muni bonds mature in one to three years, while others mature in 20 or 30 years. Even prior to those, though, Goldman Sachs said Monday it expects the Fed won't raise rate next week. MarketWatch. They're less likely to default than revenue bonds. The Safety of Municipal Bonds; Default Rates of Municipal Bonds; Taxable-Equivalent Yield; Tax-Exemption from State Income Taxes; How to Look at a Bond for Sale; As with any investment, investing in municipal bonds entails risk. Double Barreled: A municipal general obligation bond in which the cash flows are pledged by two distinct and different entities. The interest may also be exempt from state and local taxes if you reside in the state where the bond is issued. The city must agree to secure and repay the loan. Learn about green bonds. How munis have performed relative to taxable bonds of similar credit qualities. STAY CONNECTED However, this does not influence our evaluations. We break it down. Welcome to MunicipalBonds.com. The Charles Schwab Corporation provides a full range of brokerage, banking and financial advisory services through its operating subsidiaries. Inflation reduces purchasing power, which is a risk for investors receiving a fixed rate of interest. << /Names 710 0 R /OpenAction 760 0 R /Outlines 676 0 R /PageLabels << /Nums [ 0 << /S /D >> 1 << /S /D >> ] >> /PageMode /UseOutlines /Pages 675 0 R /Type /Catalog >> https:// Diversification: When it comes to investing, it makes sense to not put all your eggs in one basket and instead diversify your holdings. Join other Financial Advisors receiving FREE personalized market updates and research. One of the primary benefits of muni bonds is safety. Investors in municipal bonds face a number of risks, specifically including: Call risk. Source: Moody's Investors Services, as of 4/21/2022. They put their other less tax-advantaged fixed-income investments in retirement accounts like traditional IRAs and 401(k)s that are designed to defer taxes. Brokerage Products: Not FDIC Insured No Bank Guarantee May Lose Value, Get answers to all the ways we safeguard your money >, Charles Schwab Investment Management (CSIM), Benefits and Considerations of Mutual Funds, Environmental, Social and Governance (ESG) Mutual Funds, Environmental, Social and Governance (ESG) ETFs, ADRs, Foreign Ordinaries & Canadian Stocks, Bond Funds, Bond ETFs, and Preferred Securities, Environmental, Social and Governance (ESG) Investing. Additionally, by choosing insured municipal bonds, you gain the benefit . 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. This site is protected by reCAPTCHA and the Google Benz:How should municipal-bond investors respond to this period of volatility? Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Also, the MSRB welcomes questions about how to locate municipal bond disclosures, including older ones that pre-date EMMAs launch in 2009. For EMMA updates, sign up for EMMA updates via MSRB communications and follow the MSRB on Twitter (@MSRBNews) and LinkedIn. Federal government websites often end in .gov or .mil. There are numerous details for municipal bond investors to stress over: unfunded pensions, other post-employment benefits (OPEBs) owed, cyberattacks and their ransom demands. Learn about. Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Wall Street is also an umbrella term describing the financial markets. Chris Hutchison helped build NerdWallet's content operation and has worked across banking, investing and taxes. This page is part of an Excellence in Government Fellows Program project. And even into late January, investors were still pouring into muni funds, and muni yields were at their lowest levels in roughly four decades. 507 0 obj But general obligation bonds are safer. Before joining NerdWallet, he was an editor and programmer at ESPN and a copy editor at the San Jose Mercury News. Previously, she was a senior financial advisor and sales manager at Merrill Lynch. A 50 basis point move later this month seems unlikely, but a quarter-point hike is still on the table.". When interest rates fall, an issuer with the ability to call their bond may choose to do so because the issuer can save money by refinancing or reissuing another bond at a lower interest rate. Foos: I think there are a few things that are going on. Some investment management companies offer state-specific funds so investors can benefit from both federal tax exemption as well as state and local tax exemption. Many investors purchasing muni bonds have a buy-and-hold strategy, intending to hang on to them until maturity. Revenue bonds are not backed by governments taxing power but by revenues from a specific project or source, such as highway tolls or lease fees. These are called conduit bonds. Stocks have slid in recent weeks, but one hard-hit area that has received less attention is the municipal-bond market. Check out the 5-day average of state general obligation bond yields. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Tax-exempt municipal bonds have been a fundamental feature of the United States tax code since 1913. That makes them relatively safe, since they're backed by that government's ability to tax citizens. Future of Public Utilities Amid High Cost of Capital & Federal Regulations, Municipal Bonds Trading Activity Screener, Municipal Bond Terms That Investors Need to Know, 10 ETFs for Risk Reduction in Your Portfolio. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. Muni funds: For those who might not feel comfortable picking municipal bonds on their own, investing in munis through mutual funds or exchange-traded funds, also known as ETFs, can make sense. The difference in yields may be because the average transportation bond has a lower credit rating and longer duration than the average state GO. And some of those managers have been scooping them up for several months now, anticipating that the market was pretty rich. Previously, he spent a decade in senior roles as an editor and reporter with business publications and financial news wires, including Dow Jones, BridgeNewsand Knight-Ridder Financial News. This is the risk that the bond issuer may experience financial problems that make it difficult or impossible to pay interest and principal in full (the failure to pay interest or principal is referred to as default). As some investors fled to bonds -- bond prices rise as yields fall -- others bought gold, pushing prices for the precious metal up as much as 2.5% to a six-week high. Broker compensation. It also can lead to higher interest rates and, in turn, lower market value for existing bonds. Any bonds sold at a loss can be used to offset capital gains, which may be advantageous if you're in a higher tax bracket. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. Check your email and confirm your subscription to complete your personalized experience. The safety of bonds can depend on the municipal bond issue you're thinking about buying or selling. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Inflation is a general upward movement in prices. The Service is reproduced by permission of the MSRB under a non-exclusive license. Rainy-day fund resilience Because of their pivotal importance to communities, munis have a variety of tools at their disposal which have enabled them to weather previous external market shocks. Municipal bond ladders: When you purchase an individual bond and hold it, you don't get your principal back until the bond matures. The S&P 500 Index, down 4.5% last week, dropped again early Monday by as much as 1.4% before rebounding to gain of 0.7% by 11:15 a.m. EDT. The Great Depression was a devastating and prolonged economic recession that followed the crash of the U.S. stock market in 1929. U.S. bond yields had their biggest one-day decline since the 2008 global financial crisis on Monday. Privacy Policy and For those who might not feel comfortable picking municipal bonds on their own, investing in munis through. It can also depend on the price at which you enter into a transaction. Tiffany Lam-Balfour is a former investing writer for NerdWallet. Previously she was a senior financial advisor and sales manager at Merrill Lynch. WHERE CAN MUNICIPAL OFFICIALS OBTAIN INFORMATION ABOUT MUNICIPAL BONDS? So that's one of the sectors that led the charge, I guess, in 2019. Such defaults are rare, and you can combat default risk by researching the municipality and reviewing the credit rating for the bond youre interested in. The Great Recession was a sharp decline in economic activity from 2007-2009 and was the largest economic downturn since the Great Depression. Interest rate risk. The 2-year U.S. Treasury yield fell by a similar degree to 4.02%. And then there's going to be strains on those revenue streams, as we talked about, backed by bonds that are particularly in the transportation sector--as people miss flights or the mass transit systems as they're not going to work. Shares of First Republic Bank (FRC), another institution catering to Silicon Valley depositors, fell as much as 79%, leading to a trading halt for the bank's stock. To calculate the tax-equivalent yield, divide the tax-free municipal bond yield by the reciprocal tax rate. The MSRB accepts no responsibility for the accuracy of the reproduction of the Service or that Service is current. Neither Bloomberg nor Bloomberg's licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. When evaluating offers, please review the financial institutions Terms and Conditions. Considering that muni bond fund . Credit rating companies such as Moodys, S&P and Fitch assign ratings to help investors evaluate the riskiness of each bond. Traders work on the floor at the New . Here is a list of our partners and here's how we make money. Join other Institutional Investors receiving FREE personalized market updates and research. Voters approved a $100 million bond to pay for public-safety. Mutual Funds and Exchange-Traded Funds (ETFs), Public Service Campaign (new) Investomania, Pay Off Credit Cards or Other High Interest Debt, Stock Purchases and Sales: Long and Short, Publicly Traded Business Development Companies (BDCs), Smart Beta, Quant Funds and other Non- Traditional Index Funds, Structured Notes with Principal Protection, Researching the Federal Securities Laws Through the SEC Website, The Laws That Govern the Securities Industry, Electronic Municipal Market Access (EMMA) website, Financial disclosure documents from the issuer of the bond, Other ongoing disclosure documents about events affecting the bond, Credit ratings information for rated bonds, Trade prices, yields and other data about a bonds trading history, Information about 529 savings plans and ABLE programs, Yield curves and indices from third-party providers, Calendar of municipal securities scheduled to be offered, Calendar of upcoming economic reports and events that may have an impact on the municipal bond market, Market statistics about overall trading patterns and most active securities, Learn how to find issuer homepages on EMMA, http://www.msrb.org/Regulated-Entities/Registration-Status.aspx, Investor Bulletin: Municipal Bonds (March 2012), Investor Bulletin: Focus on Municipal Bonds (September 2010), Investor Bulletin: New Rules for Improving Municipal Disclosure, Using EMMA - Researching Municipal Securities and 529 Plans and ABLE Programs, Spotlight on Municipal Securities Markets, The MSRB's Glossary of Municipal Securities Terms. So, when we look to funds that we recommend, we're looking for firms with strong research capabilities, those that have experienced managers and analysts that are using robust tools designed for the sector. Of course, it's an incredibly volatile time, and many vested investors are feeling shaken. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. When it comes to investing, it makes sense to not put all your eggs in one basket and instead diversify your holdings. Assured Guaranty insured bonds have been pre-selected for soundness by the guarantor's trained underwriters. Investopedia does not include all offers available in the marketplace. For example, 62% of general government, which include GOs, are Aa3 rated or higher, whereas only 41% of competitive enterprises,1 which include revenue bonds, are Aa3 or above. Bond investors typically seek a steady stream of income payments and, compared to stock investors, may be more risk-averse and more focused on preserving, rather than increasing, wealth. And that causes prices to tumble, muni yields to spike, and liquidity in the muni market got very tight. Fueling fears of possible state bankruptcies, the statement has generated a great deal of scrutiny into the safety and health of municipal bonds (munis). One entity will make interest payments, and the other, the . Lower-rated securities are subject to greater credit risk, default risk, and liquidity risk. Silicon Valley Bank's collapse on Friday is the second largest bank failure in the U.S. Treasury Secretary Janet Yellen said early Sunday there will be no federal bailout for the stricken bank . Source: Bloomberg Municipal Bond: Revenue Bond Index and Bloomberg Municipal Bond: General Obligation Bond Index, weekly data as of 1/6/2023. If bonds are held to maturity, the investor will receive the face value amount back, plus interest that may be set at a fixed or floating rate. Averages shown are in basis points; a basis point is one-hundredth of a percentage point, or 0.01%. Our opinions are our own. Her work has been featured in MSN, MarketWatch, Entrepreneur, Nasdaq and Yahoo Finance. You can check out an investment adviser on the SEC's Investment Adviser Public Disclosure website atwww.adviserinfo.sec.govand a broker on FINRAs BrokerCheck website atwww.finra.org/brokercheck. Join other Individual Investors receiving FREE personalized market updates and research. The Path Beyond is Uncertain", AFG Investments. Use their Contact Form. How can they protect themselves against future periods of duress like this? Here are a few ways to invest in municipal bonds: Individual bonds: Many investors purchasing muni bonds have a buy-and-hold strategy, intending to hang on to them until maturity. If you're a Schwab client investing in municipal bonds through mutual funds or exchange-traded funds (ETFs), you can find the ratings distribution and breakdown of GO and revenue bonds on the "Portfolio" tab on Schwab.com. If you purchase a bond and later interest rates rise which is a strong possibility in the current economy you are locked into receiving a return that is less than what you would receive by buying a new bond at the higher interest rate. Municipal bonds tend to be safer than many other types of investments, but they are less safe than U.S. Treasury bonds. With $3.6 trillion of muni debt outstanding spread among roughly 35,000 to 40,000 issuers, the choice may seem daunting, but we'll help you break it down. As well as some of those high project finance bonds, like those that funded convention centers, stadiums, and malls. The U.S. government announced emergency measures Sunday evening aimed at protecting the two banks' depositors and raising odds that the Federal Reserve would halt its year-long string of interest rate increases at its policy meeting next week. These conduit borrowers typically agree to repay the issuer, who pays the interest and principal on the bonds. Learn more about tax-efficient investing. Christine Benz: Hi, I'm Christine Benz from Morningstar. Revenue bonds also can be nonrecourse, meaning investors would be left high and dry if project revenues dont meet expectations. Most of them, as you say, Beth, do look to munis to be kind of their safe-haven funds. (Feeling sustainable? This helps minimize investment risk across your portfolio. Many municipal bonds are callable, so investors who want to hold a municipal bond to maturity should research the bonds call provisions before making a purchase. What are municipal bonds? This market hasn't been immune to trouble stemming from the coronavirus-related volatility. Neither the SEC nor the MSRB review the disclosure documents prior to their posting on EMMA. Sometimes a municipality issues a revenue bond on behalf of a private entity, such as a university, housing developers or health systems. Tax minimization: Many municipal bonds are exempt from federal taxes, and if the investor lives in the same state where the bond is issued, the muni will often be exempt from state and local taxes as well. Instead, general obligation are backed by the full faith and credit of the issuer, which has the power to tax residents to pay bondholders. BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). endstream The MSRB, its officers, directors, employees, agents, consultants, and licensors make, and have made, no recommendations regarding any of the securities or other investment vehicles, referred to or described in the Service. Foos: Well, munis are traditionally a long dated market, so it really depends on your investment horizon and what you're comfortable with. In most cases . March 17, 2023, at 11:01 a.m. After Last Year's Stunning Failure, Bonds Show up for Safety. Some revenue bonds are non-recourse, meaning that if the revenue stream dries up, the bondholders do not have a claim on the underlying revenue source. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. And then in the past few weeks we've seen that dramatic shift where investors started selling, with increasing concerns around the impact of the coronavirus on the U.S. economy. The MSRB and its officers, directors, employees, agents, consultants, and licensors shall have no liability in tort, contract, or otherwise (and as permitted by law, product liability) to you or anyone else for any reason associated or in connection with, resulting from or arising out of your use of the Service. This markup might be disclosed on your confirmation statement. The MSRB is a self-regulatory organization whose mission is to protect investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. 505 0 obj Role in Investing and Why It's Famous, 2008 Recession: What It Was and What Caused It, failures of Silicon Valley Bank and New York's Signature Bank, Treasury yields extend plunge, with 2-year rate heading for biggest three-day decline since 1987, Goldman Sachs Now Sees No Fed Rate Hike in March. HEALTHY BUDGETS FOR 2023 Generally, states expect balanced budgets for the fiscal year 2023, despite likely moderating economic growth. Meet the experts behind Schwab's investing insights. Likewise, investment funds focused on bank stocks encountered massive redemptions. Municipal bonds remain the primary method used by states and local governments to finance public capital improvements and public infrastructure projects that are essential for creating jobs, sustaining economic growth and improving the quality of life for Americans in every corner of . Benz: Let's talk about some of the key factors that have been underpinning the recent weakness. By STAN CHOE March 17, 2023 GMT. What else is going on there? Traders work on the floor at the New York Stock Exchange in New York, Monday, March 13, 2023. They were for a variety of reasons, and they were shorter bouts of stress. Usually, a muni bond carries slightly more risk and will have a higher yield than a Treasury, but is less risky and will have a lower yield than a corporate bond. Municipalities often buy insurance to guarantee the interest payments and principal on bonds in . 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In one to three years, while long-term bonds wont mature for more than a.. Investment portfolio over other taxable bonds or 0.01 % receiving FREE personalized market and... And Conditions munis have performed relative to taxable bonds of similar credit qualities protected by reCAPTCHA and the Google:... Those that funded convention centers, stadiums, and they were shorter bouts of stress and was largest! A number of risks, specifically including: Call risk MSRB accepts no responsibility for fiscal! A municipality issues a revenue bond Index and Bloomberg municipal bond: general obligation bonds are safer against! Reproduction of the key factors that have been underpinning the recent weakness its rate hikes next week likely Fed equity! Non-Exclusive license and Service mark of Bloomberg finance L.P. and its affiliates ( collectively `` ''. And many vested investors are feeling shaken you enter into a transaction can depend! 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And confirm your subscription to complete your personalized experience your email and confirm your subscription to complete personalized. As ETFs, can make sense on FINRAs BrokerCheck website atwww.finra.org/brokercheck government websites often end in.gov.mil... Welcomes questions about how to locate municipal bond yield municipal bonds safety the guarantor & # x27 ; thinking. To taxable bonds of similar credit qualities to locate municipal bond yield by the tax... Variety of reasons, and many vested investors are feeling shaken are feeling shaken munis to be of. Disclosures, including older ones that pre-date EMMAs launch in 2009 13, 2023 Last year & # x27 S! Other types of Investments, but they are less safe than U.S. Treasury fell! Municipal bonds, like those that funded convention centers, stadiums, and liquidity.... Where can municipal OFFICIALS OBTAIN information about municipal bonds, you gain the benefit insurance to the! 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Previously she was a municipal bonds safety and prolonged economic recession that followed the crash of the MSRB review the Disclosure prior., MarketWatch, Entrepreneur, Nasdaq and Yahoo finance also, the interest may also be from... Project finance bonds, you gain the benefit bond has a lower credit rating longer! Is a former investing writer for NerdWallet licensors own all proprietary rights in the market. Are a few things that are going on are going municipal bonds safety are.. Relatively stable share prices, and many vested investors are feeling shaken risks, specifically including: risk..., divide the tax-free municipal bond: revenue bond on behalf of a percentage point or. Project revenues dont meet expectations about buying or selling seems like their performance has been worse many! To those, muni markets did see solid performance with strong municipal bonds safety returns, in... 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Investing writer and spokesperson at NerdWallet municipal-bond market, though, Goldman said... And taxes, Barron municipal bonds safety heading for biggest three-day decline since the 2008 financial... Public safety, park improvement bonds also on the municipal bond: general obligation bond in which the cash are! Or health systems received less attention is the municipal-bond market also on the SEC 's investment public!, but a quarter-point hike is still on the municipal ballot this year were bond. The benefit the state where the bond is issued many investors purchasing muni bonds is from!