taxable municipal bond

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Taxable municipal bond

Taxed private-purpose bonds issued by the state or local government to finance prohibited projects such as sports stadiums.

Taxable Municipal Bond

A municipal bond in which a local government entity seeks to raise money for a private company with no obvious public benefit. The municipality issues a taxable municipal bond when it wishes to attract a business and the jobs it would bring to the area, especially when the business may be otherwise unable to obtain financing for the project. While this may benefit the area in the long term, the bond remains taxable unless then municipality can prove that a public benefit derives directly from the bond. Taxable municipal bonds generally are not guaranteed by the revenue of the municipality. See also: Private activity bonds.

taxable municipal bond

A municipal bond in which interest paid to the bondholder does not qualify as tax-exempt for federal tax purposes because of the use to which the bond proceeds are put by the municipal borrower. Taxable municipal bonds were reissued in 1986, the first issue since 1913, because of limitations placed on municipal obligations by tax reform. Although taxable municipal bonds are subject to federal taxation, most are not subject to taxation by the state in which the municipal issuer is located. Taxable municipal bonds are generally more appropriate for pension funds and other tax-exempt investors than for individual investors.
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These were taxable municipal bonds that carried special tax credits and federal subsidies for either the bond issuer or the bondholder.
Prior to joining StableRiver, he was a Senior Vice President and the Head of Municipal Bond Research for The Hartford's Investment Management Company's Municipal Group, which manages tax-exempt and taxable municipal bonds across multiple client portfolios, including the general account of The Hartford, institutional client portfolios, and retail products including HIMCO's Municipal Opportunities and Real Return Funds.
Next, we examine the relationship between municipal bond yields and state-level demand and supply for the subsample of states with no income tax and for a control sample of taxable municipal bonds.
5 billion in Build America Bonds in two tranches Monday, the largest sale of those taxable municipal bonds in more than a month.
Part of the American Recovery and Reinvestment Act, BABs are taxable municipal bonds carrying special tax credits and federal subsidies for municipal bond issuers.
Gore said that President Clinton would propose some $700 million over the next five years in new federal spending to leverage up to $10 billion in taxable municipal bonds, which he dubbed "Better America Bonds.
Eventually, some of the small corporations that issue taxable municipal bonds will grow and want to take their company public.
Treasury-subsidized taxable municipal bonds for any continuous 24-month period ending on or prior to December 31, 2014.
Issuance of municipal bonds in 2010 is at a record pace, and taxable municipal bonds, led by Build America Bonds, are becoming an asset class with global appeal," notes JR Rieger, Vice President of Fixed Income Indices at S&P Indices.
The webinar presentation addressed the importance of the BAB program to the municipal bond market, the appeal of BABs to institutional investors and the approach for managing a standalone allocation to taxable municipal bonds.
June 2 /PRNewswire/ -- Community Capital Management today released a new white paper "A Comparative Analysis: Taxable Municipal Bonds and Corporate Bonds.
Ferris was also responsible for marketing multiple products including tax-exempt and taxable municipal bonds, high-yield municipal bonds and derivative products.