Municipal Bond Market

The municipal bond market involves the issuance and trading of bonds by local governments or their agencies to raise funds for public projects, like schools, highways, and parks. When you buy a municipal bond, you're essentially lending money to the government, which agrees to pay you back with interest over time. These bonds are often attractive to investors because the interest earned is typically exempt from federal income taxes, and sometimes state and local taxes, making them a popular choice for those seeking tax-efficient income.