1. What is a municipal bond?
A municipal bond is a bond issued by a municipality or state, local or federal entity or by a public authority of a State to finance a public purpose. Each Official Statement provides detailed information on the public purpose your bond purchase is supporting.
2. How are my bonds secured?
Your bonds are secured by the funds pledged to bondholders under the applicable General Resolution or Trust Indenture securing your bonds. Each Official Statement contains information on the money stream used to pay bondholders. For your convenience, nyhomes provides summaries of our transactions as they come to market. To see a list of bond issues currently in the market, click here.
3. What do the ratings assigned to the bonds mean?
The assigned ratings indicate the respective Rating Agency's professional assessment as to a bond issuer's ability to pay both principal and interest on its bonds. A higher assigned rating indicates that the Rating Agency is of the view that an issuer is more likely to be able to pay principal and interest on its bonds. Assigned ratings speak as of their date, and are the sole responsibility of the Rating Agency that issues them.
4. In what denominations are bonds sold?
Fixed Rate Bonds are sold in denominations of $5,000. Variable Rate bonds are sold in increments of $5,000 with a minimum purchase of $100,000.
5. What does it mean when an Agency bond is tax-exempt?
Holders of the Agencies' tax exempt bonds do not pay local, New York State or Federal taxes on the interest earned on their bonds, with certain exceptions described in the applicable Official Statement.
6. What does it mean when an Agency bond is taxable?
Holders of the Agencies' taxable bonds are required to pay federal taxes on the interest received in connection with their bond purchase.
7. At what point in the transaction's marketing can I buy a bond?
For fixed rate transactions, individual investors may purchase bonds during both the retail order period and the institutional order period. During the retail order period, orders placed by individual investors are given priority over orders placed by institutions. For variable rate transactions, investors may place orders at any time during the order period and there is no priority policy.
Last updated: 3/26/2010 5:29:58 PM