Municipal Bonds

Municipal securities—including municipal bonds or "muni bonds"—are securities issued by states, cities, counties, and other governmental entities to raise money to build roads, schools, and a host of other projects, that offer fixed-income. 

Municipal securities also include bonds issued by a governmental entity, referred to as the "conduit issuer," to finance a project to be used primarily by a third party, a for-profit entity or a non-profit entity, such as a 501(c)(3) organization, referred to as the "conduit borrower."