D.C. Municipal Bond

D.C. municipal bond funds and ETFs invest in debt obligations issued by... D.C. municipal bond funds and ETFs invest in debt obligations issued by a local government or entity in the District of Columbia. These funds typically include revenue bonds and general obligation bonds with various maturity dates. Revenue bonds are linked to projects, while general obligation bonds are repaid from general government finances. The District of Columbia has issued around $20 billion of municipal bonds, putting in the lower-middle relative to states that issue these bonds. D.C. is the formal name for the city of Washington, which is the U.S. capital. The local government, via city council, is empowered to issue municipal bonds without voter approval. A notable feature of D.C.’s municipal debt are so-called industrial revenue bonds. These allow businesses and non-profits to renovate properties and construct new buildings by borrowing at lower rates than commercial loans. D.C. also issues general obligation bonds to fund its operations. Investors buy municipal bonds because they can benefit from attractive after-tax yields. Generally speaking, municipal bonds are exempt from federal tax, and also exempt from state tax if purchased by an in-state resident. Last Updated: 12/27/2024 View more View less

D.C. municipal bond funds and ETFs invest in debt obligations issued by a local government or entity in the District of Columbia. These funds typically include revenue bonds and general obligation bonds with... D.C. municipal bond funds and ETFs invest in debt obligations issued by a local government or entity in the District of Columbia. These funds typically include revenue bonds and general obligation bonds with various maturity dates. Revenue bonds are linked to projects, while general obligation bonds are repaid from general government finances. The District of Columbia has issued around $20 billion of municipal bonds, putting in the lower-middle relative to states that issue these bonds. D.C. is the formal name for the city of Washington, which is the U.S. capital. The local government, via city council, is empowered to issue municipal bonds without voter approval. A notable feature of D.C.’s municipal debt are so-called industrial revenue bonds. These allow businesses and non-profits to renovate properties and construct new buildings by borrowing at lower rates than commercial loans. D.C. also issues general obligation bonds to fund its operations. Investors buy municipal bonds because they can benefit from attractive after-tax yields. Generally speaking, municipal bonds are exempt from federal tax, and also exempt from state tax if purchased by an in-state resident. Last Updated: 12/27/2024 View more View less