Municipal and State Bond Safety

                   

The safety of municipal and state bonds, often referred to as tax-exempts, will depend to a great extent on the type of bond involved.

                       

Safety is not a major problem for general obligation bonds issued by those entities, as safety is a factor for revenue bonds, where the payment of interest and principal must come from revenues backing the bonds. Sooner or later, general obligation bonds will have to be paid by higher taxes or from savings from cutting expenses. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)