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The Tax-Exempt Municipal Bond Market—How Big and Who Buys?

Outstanding state and local debt obligations totaled $2.67 trillion as of December 31, 2008.* The largest owners of tax-exempt securities are individuals, mutual and money market funds, property and casualty insurance companies, and commercial banks.

The Tax-Exempt/Taxable Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax-exempt bond. The table is for illustrative purposes only and is not intended to be representative of any specific security.

*Source: Thomson Reuters

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All information and opinions contained in this publication were produced by the Securities Industry and Financial Markets Association from our membership and other sources believed by the Association to be accurate and reliable. By providing this general information, the Securities Industry and Financial Markets Association makes neither a recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions.