How Do I Invest in Municipal Bonds?
You’ve learned how to invest in bonds. Going one step further, there are two primary ways to begin investing in municipal bonds. One way is to purchase individual municipal bonds directly and the second is to buy a mutual fund that invests in municipal bonds. I will outline the process for each below. 1. Individual Municipal Bonds Individual municipal bonds can be bought through bond dealers, banks, brokerage firms and in a few cases directly from the municipality. Individual municipal bonds can either be bought on the primary market, which is for new issue bonds or on the secondary market, which is a market for trading bonds after the bond has already been issued. Buying Municipal Bonds in the Primary Market If an investor wants to buy a
