A municipal bond is a debt instrument issued by government entities in order to finance projects like the construction of a highway, a hospital or other infrastructure assignments of public concern.
Since they fund projects for the public, the interest earnings are tax exempt from the Federal and State laws, if the investor lives in the state where the bond is issued.
The Municipal bonds are also known as Munis and are considered a safe investment option since they are less risky, compared to other investments.
So, when you buy a municipal bond, you are lending money to the bond issuer in exchange for regular interest payments and the return of the original principal amount.
Since the issuer of municipal bonds can be a state, city, county or other entities such as universities, hospitals, corporations, and banks, it is always good to see issuers creditworthiness before purchasing a bond.
The issuer’s creditworthiness can be evaluated by these principal rating agencies:
These agencies consider the assets, cash flow, expenses and growth opportunities before assigning the ratings to bonds; the higher the rating, the better the bond issuer got qualified.
Individuals, mutual funds, insurance companies, investment & commercial banks, and foreign investors may purchase Municipal bonds, with either public funds or somebody else’s money (in the case of banks and family offices for example) and thus, the importance of having access to such critical information like the bond ratings of the municipal bonds.
Investors should have a thorough knowledge about the municipal bonds before investing, but since there is a lack of access to unbiased data and market transparency, it becomes a difficult task to make the right investment that fits your investment policy. Until now! With the PFITR solution, there are good news for anybody looking into fixed income securities, like municipal bonds!
With a mix of the latest technology and up-to-date bond market information, an affordable online solution has been developed by “PFITR” and its subject-matter expert Jim Koetting. It is a software-as-a-service (SaaS) technology that is promising to become the source for finding and validating any municipal bond that an investor may have to look at before buying. As PFITR is a Fin-Tech that strives to bring transparency to the bond market and make all of its data available, it enables those responsible for overseeing tax dollars or other funds, to see valuation metrics based on market transactions to make the best investment decisions possible.
PFITR aims to bring transparency and empower the institutional investors in the bond market with one-on-one guidance for better investments. And with its solutions, provide innovative platforms to better manage fixed income portfolios by delivering key and transparent data, to lessen the risks and improve the returns. Then, the municipal bonds may be even safer to invest on, when you can see all its variables that can help you estimate its behavior in the market.
Want to know more? Check out at https://pfitr.com/try-demo/