Where is the best place to buy City/Municipal Bonds? Which ones are the best to buy?

Question

I've been reading a lot about these as being a relatively stable way of backing up an investment portfolio. However, I have never once figured out how to actually buy these, and/or where to look.

If possible, please give me specific examples of where you buy them, or have seen them for sale ideally online. Please don't just say "broker" or "google it". I've already done that, and all I can find are glossy overviews by overpaid financial analysts.

Answer 1

Triple-A bonds are the top-rated and surest-bet for investment purposes, however, you should never invest in anything you know little about... Municipal (or "Munis") should be bought 'direct'...not through a broker. Look to city and county development bonds in an area you are at least familiar with...and preferably close enough to keep tabs with as well. Also, like any investment they can lose value or be downgraded (rating is lowered because the risk of default is increased)...so, it's safer to go with shorter maturities...even if the longer-term ones offer higher rates/returns. There are several informational links below, but I like The Motley Fool (www.fool.com)...which requires free registration...I recommend you subscribe to their e-letter.

To research bonds...and possibly invest, try Bondwire.com
(I am not a broker, nor do I get commissions from this advice...and take no responsibility for any losses!)
Good Luck!

Answer 2

No, it is not as easy to buy bonds as stocks. Most bonds are not traded on an exchange. Instead they are sold from dealer inventory. Assuming that GE sells its bonds through an IPO, you will need to contact your stock broker and ask if he is going to participate in the IPO. If so, you might be allowed to enter an order. If not you might also be able to buy them in the after market after the IPO. The minimum is usually $1,000. Some do have a smaller minimum. With municipals the minimum is usually $5,000. You can ask your broker to find you some GE bonds. Brokers sell bonds by marking them up and selling them on a yield to maturity basis. If they are callable, you will also need to know the yield to call. It can be considerably less. My broker is currently quoting GE Capital 6% due 2012 at 91 to yield 9.259%. GE Capital is not GE though. It is a subsidiary. He is also quoting a minimum purchase of 1 bond which would wind up costing $910 plus accrued interest. He has quite a few GE Capital issues in inventory currently going out to 2017 and yielding 9.39% for the 2017 issue. He also has a few smaller bits and pieces in smaller quantities yielding 9.5%. These are issues with only a few thousand in inventory.

Answer 3

Fms Bonds Complaints

Answer 4

It is best to buy municipal bonds from your city or state. Otherwise, you lose part of the tax benefit . They will still be exempt from federal taxes, but you will have to pay state and local taxes on the interest.

You should ask your accountant.


You can buy them from any broker. There are also Muni mutual funds -- for certain communities.

Answer 5

Obviously, you're knowledge of the bond market is non existant. You NEED HELP... From a professional. Some of us really have the clients best interest(s) at heart. What are your objectives? What are your investable assets? How old are you? ARE bonds the right instrument for you? etc., etc.

Answer 6

Well sorry but you will probably have to use a broker. Look for 5A rated bonds most will give about the same rate of return. it's low but reliable.

Answer 7

FMS Bonds (www.fmsbonds.com) has been providing excellent service and has a great screener on their web site.

I've also heard good things about Zions Bank (www.zionsbank.com ) and they have a comprehensive screener.

Answer 8

Labenthal.