Analyzing Credit of Municipal Bonds

Premium

Two general types of municipal bonds (or “munis” as they are commonly called):

  • Tax-backed or general obligation bonds.
  • Revenue bonds.

These bond types require their own distinct approaches when performing credit analysis.

Tax backed bonds: factors to consider

  • The debt burden of the community.  This is commonly examined in terms of debt per capita, debt as a percent of real estate values, and/or debt as a percent of community personal income.

Unlock Premium Content

Upgrade your account to access the full article, downloads, and exercises.

You'll get access to:

  • Access complete tutorials and examples
  • Download source code and resources
  • Follow along with practical exercises
  • Get in-depth explanations