Municipal Bonds and Public Debt Management

Municipal bonds are debt securities issued by local governments to fund public projects like schools, roads, and infrastructure. Investors buy these bonds, effectively lending money to the government in exchange for regular interest payments and the return of principal at maturity. Public debt management involves the strategies and policies that governments use to manage their borrowing and repayment. This includes determining how much to borrow, what types of bonds to issue, and ensuring that debt levels remain sustainable to maintain financial stability and fund essential services effectively.