A form of debt obligation issued by hierarchical tiers below the ultimate governing body of a nation, country, or territory. This form of debt comes from bond issues and is issued by states, provinces, cities or towns in order to fund municipal and local projects.
Also referred to as a "municipal (muni) debt obligation".
Investopedia Says:
This form of debt obligation is commonly created by municipalities in order to meet funding requirements. Issuing bodies are responsible for their own debt issues, which can carry significant risk depending on the financial health of the municipality.
Related Links:
Investing in these bonds may offer a tax-free income stream but they are not without risks. The Basics of Municipal Bonds
Find out how to determine whether the tax exemption offered by "munis" benefits you. Weighing The Tax Benefits Of Municipal Securities
Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial


