Insured municipals offer investors additional assurance

Benjamin Franklin famously declared: “In this world, nothing can be said to be certain, except death and taxes. For investors looking to lessen the impact of taxes, municipal bonds may be particularly attractive — their interest income is often exempt from federal taxes and may be exempt from state and local taxes as well. And for those who are looking for extra assurance regarding the certainty of their income, insured municipal bonds may provide a solution.

What are insured muni bonds?

Insured municipals are a niche market, accounting for 6% of all municipal issuance so far in 2019.1 But, they provide assurance that a bond’s interest and principal will be paid on time — even if the issuer defaults.