Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
Another word for municipal bonds.
Municipal securities are issued by local or state governments to raise money for roads, bridges, new buildings, and all that jazz. The interest is usually exempt from federal taxes, which is why some investors love 'em. Historically, they were seen as pretty secure, but that was before the 2000s, when some U.S. cities declared bankruptcy (we still love you, Detroit).