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Does the prospect of earning 0.1% on a bank savings account leave you ... unenthused? Do the 0.2% interest rates that the U.S. government is paying on two-year Treasuries stick in your craw? Maybe ...
9 Best Safe Investments. Here are the nine best safe and low-risk investments: High-yield savings accounts. ... Municipal bonds. Corporate bonds. S&P 500 index fund/ETF. Dividend stocks.
In a new post at the New York Federal Reserve's blog site, three bank officials took a look at the $3.7 trillion US municipal bond market. After noting that about 75% of US municipal bonds are ...
A bond is considered investment grade or IG if its credit rating is BBB− or higher by Fitch Ratings or S&P, or Baa3 or higher by Moody's, the so-called "Big Three" credit rating agencies. Generally they are bonds that are judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in them.
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation.
Municipal bond arbitrage, also called municipal bond relative value arbitrage, municipal arbitrage, or just muni arb, generally consists of building a leveraged portfolio of high-quality, tax-exempt municipal bonds and simultaneously hedging the duration risk in that municipal bond portfolio by shorting the equivalent taxable corporate bonds.
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