A bond attorney is an attorney who specializes in the area of law known as "municipal bonds." Municipal bonds are a type of investment security that is issued by local governments and other public entities in order to finance various public projects. Bond attorneys are responsible for ensuring that the issuance of these bonds complies with all applicable laws and regulations. They also advise bond issuers on the best way to structure their bonds in order to maximize their investment return.
What are the two types of municipal bonds?
Municipal bonds are debt securities issued by state and local governments to finance public projects such as roads, schools, and bridges. There are two main types of municipal bonds: general obligation bonds and revenue bonds.
General obligation bonds are backed by the full faith and credit of the issuing government, meaning that the government is responsible for repaying the bonds. Revenue bonds are backed by the revenue generated by the project being financed, such as tolls from a bridge or tuition from a school.
Do municipal bonds expire?
Municipal bonds do not typically expire, but there are a few exceptions. For example, some bonds may have a call provision, which allows the issuer to redeem the bonds early. Additionally, some bonds may have a maturity date, which is the date on which the issuer must repay the bondholders.
What is the advantage of municipal bonds?
Municipal bonds are a type of debt securities issued by state and local governments in order to finance public projects such as infrastructure, schools, and hospitals. They are typically exempt from federal, state, and local taxes, which makes them an attractive investment for taxpayers in high tax brackets.
Who pays underwriting counsel? The party that pays underwriting counsel in a municipal bond transaction is typically the issuer, although the underwriter may also pay in some cases. The reason the issuer typically pays is because the underwriting counsel provides services to the issuer, such as helping to prepare the offering documents and giving advice on the transaction. The underwriter may also pay in some cases because the underwriting counsel provides services to the underwriter, such as helping to negotiate the terms of the transaction.
What is the current municipal bond rate?
The current municipal bond rate depends on a number of factors, including the type of bond, the issuing municipality, the credit rating of the municipality, the term of the bond, and the current market conditions. Generally, municipal bonds have rates that are lower than comparable Treasury bonds. For example, as of June 2020, the 10-year Treasury bond rate was approximately 0.70%, while the 10-year AAA-rated municipal bond rate was approximately 1.15%.