Top 10 Municipal Bonds for Sale
List of Municipal Bonds for Sale
This selection of top municipal bonds for sale is distinguished by their top-tier BondView ratings and credit assessments, which can indicate low default potential and robust fiscal health. Whether you’re searching for the best municipal bonds to buy now or just starting to build a portfolio, this report aims to guide investors in making more informed decisions.
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This list was last updated October 8, 2024.
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Why Invest in Municipal Bonds
Summary Statistics
- Quantity Available: The average quantity available is 128, with a minimum of 5 and a maximum of 800.
- Yield to Worst: The average yield is about 3.37%, ranging from 3.30% to 3.43%.
- Coupon: Most bonds have a 5% coupon, with one exception at 4.75%.
- Asking Price: The average asking price is $100.49, ranging from $100.08 to $100.65.
- Bondview Estimated Price: On average, the estimated price ($102.45) is slightly higher than the asking price.
- Bondview Rating: All bonds have a rating of 5, which is the highest possible rating.
- BV Credit Score: The average credit score is 9 out of 10, indicating high creditworthiness.
Investors seeking a balanced risk-return profile will find these bonds appealing due to their solid credit quality and high yields compared to benchmark rates.
Yield Spread Analysis
| CUSIP | Yield to Worst | Yield Spread | BV Credit Score |
|---|---|---|---|
| 735439QA2 | 0,0343 | 0,0093 | 9 |
| 943363NA5 | 0,0342 | 0,0092 | 9 |
| 196734BK2 | 0,0341 | 0,0091 | 9 |
| 789220KY5 | 0,034 | 0,009 | 9 |
| 467430NX8 | 0,0337 | 0,0087 | 10 |
| 496443WA6 | 0,0335 | 0,0085 | 9 |
| 917572YA1 | 0,0334 | 0,0084 | 9 |
| 700251EU1 | 0,0333 | 0,0083 | 9 |
| 283822MR2 | 0,0332 | 0,0082 | 9 |
| 04052EBB3 | 0,033 | 0,008 | 8 |
This table shows the yield spread for each bond, which is the difference between the bond’s yield to worst and the benchmark yield (assumed to be 2.5% for a 1-year Treasury). The yield spread represents the additional yield investors receive for taking on the risk of the municipal bond compared to a risk-free Treasury bond.
Best Value Municipal Bonds (Highest Yield Spread to Credit Score Ratio):
Below are the best value municipal bonds based on the yield spread to credit score ratio—a metric that helps identify bonds offering strong returns relative to risk:
| CUSIP | Yield to Worst | Bv Credit Score | Yield to Credit Ratio |
|---|---|---|---|
| 735439QA2 | 0,0093 | 9 | 0,001033333 |
| 943363NA5 | 0,0092 | 9 | 0,001022222 |
| 196734BK2 | 0,0091 | 9 | 0,001011111 |
| 789220KY5 | 0,009 | 9 | 0,001 |
| 467430NX8 | 0,0087 | 10 | 0,00087 |
This list helps you pinpoint the best muni bonds to buy, considering both yield potential and credit risk. For investors seeking a mix of safety and return, bonds with a high credit score and attractive yield spreads stand out as top picks.
Yield Curve and Credit Quality
Understanding the relationship between yield curves and credit quality is crucial for investors. Typically, longer-term bonds offer higher yields due to the extended risk, while shorter-term bonds are favored for their lower risk.
Investors can use this information to assess municipal bonds for sale based on their risk-return profile. This approach allows you to align your bond selection with your financial goals, whether you seek top-rated municipal bonds for safety or bonds offering higher yields with some added risk.
This plot illustrates the relationship between the maturity date and yield to worst, with color indicating credit quality. It helps visualize how yield varies with maturity and credit score.
The yield curve can help investors understand how yields change as the maturity date approaches. Generally, longer-term bonds tend to offer higher yields to compensate for the increased risk associated with time.
Credit quality refers to the creditworthiness of the bond issuer, which is often assessed through credit ratings. Higher credit quality indicates a lower risk of default.
Risk-Return Analysis for Top Municipal Bonds
This scatter plot shows the relationship between yield to worst (return) and BV credit score (inverse risk), helping identify bonds with favorable risk-return profiles.
This analysis compares yield to worst with BV credit scores to reveal the best municipal bonds based on their risk-return profile. Bonds with high yields and high credit scores represent the most attractive investments.
- High Credit Quality: Bonds with high credit ratings (8-10) are ideal for conservative investors.
- Yield Seekers: Bonds at the higher end of the yield spectrum may appeal to investors prioritizing returns, but they come with slightly more risk.
- Balanced Investors: Those seeking a balance of yield and safety might focus on bonds with a credit score of 9, offering better yields while maintaining low risk.
By reviewing the best municipal bonds to buy now, investors can optimize their portfolio to balance yield, credit risk, and maturity for maximum returns.
Potential Risks
- Interest Rate Risk: Although short-term, any rise in interest rates could affect bond prices negatively.
- Market Liquidity: Some bonds have low quantities available, which might affect liquidity and ease of trading.
- Economic Conditions: Changes in economic conditions could impact the creditworthiness of the issuers.
- Price Volatility: While the bonds are priced near par, market fluctuations could lead to price volatility.
These considerations and risks should be evaluated in the context of an investor’s overall portfolio strategy and risk tolerance. Consulting with a financial advisor is recommended to tailor investment decisions to individual financial goals.
Top Muni Bonds: Issuer Information
- Port of Tacoma, Washington
- Wausau School District, Marathon County, Wisconsin
- State of Colorado
- St. Croix Central School District, Wisconsin
- Jackson County, Missouri Consolidated School District
- City of Kingsport, Tennessee
- Utah Water Finance Agency
- Park City, Utah
- City of El Paso, Texas
- Arizona Industrial Development Authority
How to Find Municipal Bonds for Sale on BondView
The bonds on this article were found using BondView’s Buy Bonds feature. This feature was built to help investors discover new investment opportunities.
To get started, log into your BondView account. If you don’t have an account yet you can request a free trial here.
Step 1: Go to “Buy Bonds
Step 2: Choose the filter details that fit your criteria. For this list we selected:
- Yield: 2%-4%
- Market Rating: 5 stars
- BV Credit Score: 8-10
If you have more variables you need to take into account, you can also filter by state, sector, maturity date, coupon, tax status, insured, quantity available, rich or cheap, alternative minimum tax.
Step 3: Go through your list of municipal bonds for sale. Start by sorting your list of municipal bonds from highest to lowest yield. Then, click “Show” under the “Rich or Cheap” column to view BondView’s estimated price and assess whether a bond is valued at a fair price.
Step 4: Find out which funds hold each municipal bond and who insures it.
- Fund Details: Click on the icon right next to the number of funds, under the “Funds” column. It will show you a list of funds that own the bond you are looking at.
- If a bond is insured, hover over the “i” icon next to “Yes” under the “Insured” column to find out who insures the bond.
Bonus: If you want to find out whether a specific bond is available for sale, you can search directly by CUSIP or Name.
For Investors & Analysts
Keep Your Broker Honest
Your broker may not reach out to you proactively about bonds for sale and may not know all your options. With BondView, you can rest assured that you have the same or better information than your broker.
Verify A Muni Bond Quote
Get an accurate price for a bond that your broker has pitched. Verify your own estimated price against its real-time asking price.
Gauge Ease Of Buying Or Selling A Bond
BondView provides 3 liquidity indicators in this report. See how in demand a bond is based on the funds that hold this bond and their buy/sell activity. Do the same for public and BondView portfolios.
This list is updated every 2 months.
This list of municipal bonds for sale is current as of Oct. 8, 2024. For real-time information, use BondView as your guide. A quick CUSIP entry or advanced search reveals details such as interest rates, coupon rates, maturity dates, recent trade prices, and credit ratings.
Note: As with any investment, the market value may vary during the period the investment is held. This article is informational only and does not a substitute for professional financial advice. Please check with your financial advisor before making any investments. Subject to prior sale and market conditions as of 10/08/24.