Everything from corporate debt to municipal debt instruments, the sheer size of U.S. capital markets can certainly be puzzling for an investor seeking to strike the right balance between risk tolerance, time horizon and desired yield to enhance their potential returns.
In the global debt universe, government bonds make up the largest piece of the pie followed by the corporate debt instruments. Where both, corporate and municipal debt, are quite similar in their formation and structure, their returns and tax treatments can be significantly different for investors.
In this article, we will take a closer look at both forms of debt, their main characteristics and how each one can fit into an investor’s portfolio.
municipalbonds.com
by Jayden Sangha
Sep 05, 2018