Municipal securities

Municipal securities are called Munies and are issued by state and local governments.  There are several types and several risks associated with municipal bonds.  Obviously, one of the significant differences between Munies and Treasuries is the credit rating of the insurer.  The federal government is considered to be just about “risk free” where as Munies have credit risk and ratings.  There have been defaults in some Munies but they are rare. 

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