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- Testing the Effects of Sale Method Restrictions in Municipal Bond Issuance: The Case of New Jersey
- Can state governments save money by restricting the practice of selling tax-exempt bonds through negotiation, or do such regulations impose additional costs? Circumstances in New Jersey recently created a natural experiment to test this proposition. This study finds significant cost savings for those issues sold through competition both before and...
- White papers 2003-01-01
- Unit Investment Trusts
- Tax-exempt unit investment trusts represent one of the simplest ways for Americans to invest in tax-exempt municipal bonds. They offer a wide range benefits, including: Attractive current income free from federal and, in some cases, state and local taxes; High degree of safety with regard to payment of interest and...
- White papers 2003-01-01
- How Prevalent Is Tax Arbitrage? Evidence From the Market for Municipal Bonds
- Although tax arbitrage is central to the literatures on tax capitalization, implicit taxes, and even capital structure, there is little empirical evidence of the extent to which firms actually engage in tax arbitrage. This paper provides some evidence on the topic by focusing on a simple and observable corporate arbitrage...
- White papers 2002-08-01
- Liquidity, Default, Taxes and Yields on Municipal Bonds
- This paper examines the relative yields of Treasuries and municipals using a generalized model that includes liquidity as a state factor. Using a unique transaction dataset, it is able to estimate the liquidity risk of municipals and its effect on bond yields. It is found that a substantial portion of...
- White papers 2005-07-08
- Municipal Bonds: When "Tax-Free" Isn't So Free
- Municipal bonds have long been an attractive investment option for tax-sensitive investors, because munis are free of federal income tax and often state tax too. Add in the fact that munis generally have relatively higher credit quality and lower price volatility than comparable taxable bonds, and munis could trump corporate...
- White papers 2006-01-11
- Earn Tax-Free Income With Municipal Bonds
- Nobody likes to pay taxes. That's why investors naturally are interested in earning tax-free income. Municipal bond issues are a very popular way to earn tax-free income and, if income is reinvested, achieve tax-free compounding of returns. Municipal bonds (also known as "Munis") are fixed-income investments that can provide higher...
- White papers 2008-01-01
- Tax Equivalent Yield Calculator
- This tax equivalent yield tool will estimate the tax-equivalent yield, or TEY, for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in the state of residence, you can also avoid state income taxes. Use...
- White papers 2009-01-01
Additional Resources
- Higher Taxes for the Mass Affluent
- A multitude of recent and proposed law changes aim to raise the taxes of people like you. Here are a few key steps that could help you head off these impending tax hikes. ...
- Articles 2009-05-04
- Best Buys on Bonds
- Despite the nascent stock-market rally, the once-stodgy bond market remains the hot new thing for wary investors. Corporate and municipal bonds offer some temptingly high yields. Treasuries promise a safe haven. But the market is riddled with risks. Learn how to avoid them... Although stocks have bounced back in recent...
- Articles 2009-03-17
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