Municipal Bond

Municipal bonds, often called munis, are debt obligations of U.S. states, cities, counties, or other political subdivisions of states. The two primary types of municipal bonds are general obligation and revenue.

•  A general obligation bond is used for general expenditures and is backed by the issuer’s full faith and credit (taxing and borrowing power).

•  A revenue bond is used to finance a specific public service project and is backed by the cash flow from that project. Examples are bonds to finance bridges, turnpikes, tunnels, water and sewer systems, schools, power plants, prisons, transportation systems, hospitals, sports complexes, and airports.


This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

Note: To return to the previous page, close this browser window.