Fundamental Analysis of Municipal Bonds

Get municipal bond information to balance a portfolio

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.

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.

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.

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