When you receive fundamental analysis of municipal bonds education and training, it prepares you for changes in the field. Taking courses gives you hands-on experience with fluctuating laws and rates.

Whether you plan on analyzing municipal bonds for local or municipal projects, it's important to study interest rates and tax exemption opportunities so you can offer clients the best rates. In order to obtain municipal bond information and remain current in the field you might want to consider the following options:

1. Obtain municipal bond information by going to a college or university.

2. Continue fundamental analysis of municipal bonds education and training via online courses.

3. Attend conferences or seminars focusing on municipal bond analysis.

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Learn about municipal bonds analysis as you earn a degree in finance

Discover municipal bond fundamentals as you learn from experts in the field while obtaining a bachelor's degree in finance. Many universities offer in-depth courses that teach you the inner working of the industry.

I recommend: Yeshiva University, based in New York, offers a women's undergraduate program in finance. Its course Investment Analysis covers municipal bonds, but you need the prerequisites before you can take it. Several universities, including Boston University, provide students access to the Bloomberg Certification Program. The program is a two-track program for finance majors, and it offers courses on Fundamental Analysis and Mutual Bonds.

Determine how municipal bonds work by taking courses through online resources

Delve into municipal bond research and courses through online programs that offer insight into the industry. Taking courses online gives you the freedom to learn at your own pace and around your work schedule.

I recommend: Cpethink.com provides an online course for people interested in self-study options. "A Complete Guide to Investing" covers the basics of investments and helps you learn to identify the benefits and drawbacks of buying municipal bonds. SS&C Technologies provides a course overview for the Municipal Market Online Training Program by Zoologic, which covers fundamental analysis, muni bonds, and other finance strategies. You can find out more information about the learning solutions available from Zoologic at the website.

Educate yourself in analyzing a municipal bond by attending conferences and seminars

Further your education by obtaining municipal bond information at seminars and conferences where you also get the opportunity to network with other professionals. Learn about current industry trends and garner information on techniques for dealing with municipal bonds.

I recommend: RICIC offers the MuniNet Guide, which has a myriad of seminars and conferences listed to aid professionals in networking opportunities and in professional development. It covers topics such as municipal bond laws and municipal bond analysis. The National Federation of Municipal Analysts hosts regular conferences for those interested in learning more about municipal bonds. It addresses challenges facing analysts, government initiatives and other areas of importance for municipal bond analysts.

If you work with high dollar clients that need a tax break or are one of those people, then the municipal bond analysis is something that you need to know. Getting to know municipal bond fundamentals is important because even municipalities can be risky.

There are various types of municipal bonds. Some of them are subject to the AMT and others are not. Some are highly traded and prices fluctuate often. You need to be able to locate prices, but until recently there was no central location for that or municipal bonds analysis.

1. Find out which bonds are credit worthy when you do a municipal bond analysis.
2. An analysis of municipal bonds needs a place to find transparent trades between dealers. Use the official website of the MSRB.
3. Learn municipal bond fundamentals and use that information to make the most profitable decisions.

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Get municipal bond analysis and filings to help your clients

There are several areas that additional information is helpful to investors and professionals alike. A municipal bond analysis is more than just the interest and term of the bond, it's also the timeliness of filings and trade information.

I recommend: DAC Bond provides municipal bond information for issuers, professionals and investors alike. It is a centralized location for the DAC bond issuer information and gives access to investors and professionals. The site offers real-time trade history and records the trades. It updates all filings and sends reminders to issuers when they are due. RICIC offers Muni Net Guide,which provides a hub for research on municipal bond fundamentals.

Look for the fundamental analysis of municipal bonds

Sometimes finding a centralized location for municipal bond information is important. Other times the most important thing is to find a municipal bond analysis that includes the credit-worthiness of the bond. The bond investor needs to be able to look at all things, as does the professional, before making a decision or recommendation.

I recommend: Municipal Securities Rulemaking Board offers EMMA, the official site for the municipal bonds. This site offers real time trade information and intradealer prices for transparency in the exchange. Breckenridge Capital Advisors offers fundamental credit analysis of the bonds for their clients.

Get to know how bonds work before analyzing municipal bonds

The best way to prevent misinformation is to understand the functioning of the municipal bond. Several sites offer information for both the investor and the professional. Knowledge is power when you do any type of investing or advising.

I recommend: The very best site to get basic information on bond fundamentals, including municipals, is Western Washington University, College of Business and Economics. This site covers not just how municipal bonds work, but also all public bonds. AXA Advisors also has a wealth of information on bonds.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you consider location when analyzing a municipal bond. Varying locations is another way to reduce risk.

Municipal bonds may not get as much attention as stocks, but they command a large market. Approximately 5 million households own these securities. Institutions, such as banks and insurance companies, also buy municipal bonds. Determining what municipal bond to purchase involves using fundamental analysis. Investors have to consider factors such as the municipal bond’s yield or credit ratings. Here are some important terms to know when it comes to buying municipal bonds.

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Municipal bonds

Municipal bonds are what local and state governments issue to bondholders. Governments issue these bonds so they can finance projects such as hospitals or government office buildings. Municipal bonds can mature in a time period from one to 40 years. Investors like municipal bonds because they are usually tax-exempt.

I recommend: HowStuffWorks provides an introduction to municipal bonds.

Yield

One of the first things that investors look for in municipal bonds is the yield. The yield is the total return that investors make from investing in the bond. The yield is based upon the bond's price, coupon of the bond and the maturity date.

I recommend: MunicipalBonds provides in-depth information on how the yield works. You will have to scroll down the page to get to this information in the Focus on the Yield section.

Credit ratings

Credit ratings on municipal bonds show how worthy they are. Investors can assess if they should invest in the bonds or not. The following three firms rate municipal bonds: Moody's Investor's Service, Fitch and Standard & Poor's.

I recommend: Read how municipal bonds receive their ratings at Investing in Bonds.

Interest rate

The interest rate is what the government pays in order to use the money. The interest rate for municipal bonds acts similarly to other bonds; it affects the value of the bond. Thus, if the rate rises, the municipal bond's price goes down.

I recommend: Go to Fidelity to get an understanding of how interest rates affect the municipal bond’s value.

Call risk

Call risk allows the municipal bond issuer to repay all or part of the bond before the maturity date. The investor will receive a premium so that the debt can be retired early.

I recommend: Investopedia offers a good definition of call risk.

Market risks

Market risks are various factors that can influence the underlying price of a municipal bond. Factors can be recessions, wars or interest rates. Interest rates and the yields on municipal bonds have parallel relationships. This means that if interest rates fall, issuers will offer lower yields on new municipal bonds. For existing bonds that pay higher yields, investors will likely have to pay premiums in order to buy them.

I recommend: Nasdaq offers good information on how market risk can affect yields on municipal bonds.