With the recent increase in interest rates, de minimis risk has again started to loom amid the jungle of potential pitfalls for municipal bond investors.
When rising rates drive prices lower, more bonds become subject to a tax penalty, as appreciation from the discounted price can be treated as a capital gain or even regular income.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access