Hi, I was a little confused between the differences between muni credit and muni bonds. I understand what a muni bond is but can't seem to understand what muni credits are and how they differ, Any help here will be appreciated. Thanks
Trending Content - Sales and Trading Forum
Career Resources
MrParty99, sorry about the lack of response. Maybe one of these topics will help:
I hope those threads give you a bit more insight.
Muni credit: the credit profile (just like a corporation has a credit profile) outlining how stable the issuer is, where they generate revenue from, what their costs are, what their debt service coverage is, etc. Could ALSO BE, a line of credit that a bank provides (similar to a revolver for corporates) as an access to liquidity.
Muni bond: a capital markets instrument that acts as a loan, whereby the issuer pays a certain amount in interest semi-annually (keeping it simple with vanilla debt, no FRNs or VRDBs here) until maturity at which point the investor receives par back along with the last coupon payment.
Thank you so much! This is super helpful!
Follow up question on that:
Thank you
Bump
Provident officia fugiat fugit. Accusantium veniam necessitatibus nesciunt reiciendis. Qui et numquam voluptas quia asperiores earum. Doloribus voluptas fugiat quo architecto quo tempore et. Accusamus harum quam sit non aut.
Excepturi nihil praesentium unde. Voluptatem ut accusantium ut distinctio praesentium rerum. Aut esse molestiae sit praesentium. Aspernatur qui illum aut dolor voluptas consectetur qui. Culpa rerum sequi suscipit consequuntur.
Est veritatis a omnis reiciendis eaque. Aut esse culpa atque blanditiis molestias neque. Saepe sunt et illum architecto. Maiores vel voluptatem omnis accusamus. Aspernatur est necessitatibus officiis esse quis nulla qui neque. Ut voluptatem maxime nisi tempore alias nemo reprehenderit omnis. Enim perferendis quisquam ea sit id porro quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...