Understanding the Municipal Bond Market
While investors typically speak of the bond market as if it were similar to the stock market, this is not the case. There is no central place or exchanges to sell or buy municipal bonds; it is a huge over-the-counter market consisting of a network of independent dealers. The muni bond market is so vast that it’s size, which consists of approximately 4 trillion dollars of outstanding bonds, is hard to imagine and sometimes makes finding specific information difficult to obtain.
Municipal bonds are debt obligations that are issued by states, cities, counties and other governmental entities. These entities and organizations use the money to build schools, highways, hospitals, sewer systems and many other public projects. In some instances, these bonds can be tax-free.
Municipal bonds offer great investment opportunities. When an investor purchases municipal bonds, they are lending money to a state or local government entity, which in turn promises to pay the investor a specified amount of interest and return the principal on a specific maturity date.
How to Buy Municipal Bonds
Before an individual buys or sells a municipal bond, the following should be considered;
- When it comes to value, market direction and bond pricing, a diversity of opinion exists among bond dealers. This can result in a meaningful difference in the price of a bond.
- Utilizing the experience of more than one bond specialist firm usually assures a better perspective of the market value of a particular bond.
Here at THE GMS GROUP, we are municipal bond specialists. In fact, it is our core product and our brokers have in-depth knowledge of the market as well as the expertise, relationships and resources to provide High-Net-Worth individuals with attractively priced, quality tax-exempt municipal bonds as well as taxable municipal bonds.
Our municipal bond specialists can provide you with detailed information about;
- Safety of municipal bonds
- Tax-exempt municipal bonds
- Investing in tax-exempt municipal bonds
- Taxable municipal bonds
- How to buy municipal bonds
- Municipal Utility District (MUD) bonds
- Municipal bond market risk
- Gains, losses, yields and calls
- Bonds with special investment features
- Additional municipal bond facts
We offer investors the ability to compare prices on a specific tax-exempt municipal bond in a relatively short period of time. Buy or sell a bond utilizing a GMS bond specialist today. For more information, contact us or simply call 877-467-0070.