Course Overview

Municipal bonds come in several shapes and sizes, with a variety of tax structures, funding sources and methods of analyses.

Types of municipal debt include:

• General obligation bonds,
• Revenue bonds, which may focus on specific areas such as
  • Housing,
  • Healthcare,
  • Education, and
  • Transportation – as well as
• Issuance subject to the Alternative Minimum Tax (AMT),
• Build America Bonds (BABs),
• Double-barreled bonds, and
• Advance refunding bonds, to name just a few.

But what differentiates these bonds from one another, and what are some of the ways in which investors can conduct analyses on some of these instruments in both the primary and secondary markets?

For example:

This is because payments to holders of revenue bonds are not sourced from taxes the way general obligation bonds are. For revenue bonds, cash flows from constructed projects are typically used to repay investors.

In this course, we’ll cover factors such as these, as well as many others.

To navigate these oftentimes complex products, we’ll also provide you with some tools so that you may be able to become more familiar with the types of municipal notes available to purchase and trade, as well as obtain a better understanding of the features associated with municipal debt in terms of:

• Risks,
• Due diligence,
• Calculating accrued interest
• Yield disclosure, and
• Tax considerations, including
• Recent changes to state and local tax, or SALT, deductions

We’ll also walk you through the IBKR Trader Workstation, where you can locate certain municipal bonds in the secondary market and conduct due diligence to help inform your investment decisions.

In the next chapters of this video series, we’ll explore more about general obligation bonds and revenue bonds, and as you progress through the course, you may wish to revisit previous lessons to enhance your understanding of the many facets that comprise the municipal bond market.

You’ll also find a quiz at the end of each lesson, along with a final exam at the end of the course, to reinforce your understanding.

Please keep in mind that as you review this course that this material does not, and is not, intended to take into account your particular investment needs. Before acting on this material, you should consider whether it is suitable for your financial conditions, investment objectives or other requirements.

Other Disclosures

The information in this presentation is provided for informational purposes and should not be relied on for tax, legal or accounting advice. Before engaging in any transaction, you should consult your own tax, legal and accounting advisors.