How to Locate Municipal Bonds
Municipal bonds are issued by local governments and other revenue authorities such as school boards, airport commissions and water boards. These bonds generally offer investors a relatively low-risk investment with modest returns, though there is no guarantee the bonds will return a profit for investors. Individual bonds can be located through several online search engines and investors can search based on the bond's issuer, the maturity date or the bond's CUSIP number, a nine-digit, alpha-numeric code identifying individual bonds.
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Instructions
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Each bond issued, whether by a municipal authority or a corporation, is issued a Committee on Uniform Security Identification Procedures (CUISP) number. The CUISP number is located on the prospectus and offering statement for each bond. If you know a bond's CUISP number, search for the bond using that number on one of the websites listed in the resources or reference sections.
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If you do not know a bond's CUSIP number or are unsure which bond you want to invest in, large brokers such as Fidelity will allow you to search for bonds, including municipals, based on issue date, interest rate or maturity date. Their websites allow you to view current trading activity and find the information on individual municipal bonds.
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You can also search for bonds at Investing in Bonds, a website overseen by The Securities Industry and Financial Markets Association and monitored by government regulators. This site allows you to sort based on the bond's various characteristics and can provide a valuable tool for comparing various municipal bonds.
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Tips & Warnings
If locating and buying a series of several municipal bonds seems too time-consuming, consider investing in one of the municipal bonds funds available from banks or brokerage firms. These funds hold a wide portfolio of bonds, which may have a lower total return but will protect you from the risk of loss if a single bond issuers fails to make interest payments.
Bonds are generally a conservative, relatively safe investment. But before buying a bond consider the financial health of the issuing municipality. Remember that bonds are not insured or guaranteed the same as bank accounts and there is no guarantee you will receive your money back or make a profit on the investment.
References
Resources
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