California municipal bond yields are high, at least compared with other munis.
California municipal bond yields are high, at least compared with other munis. Use as a family or memorial fund to make philanthropy a family affair or to honor loved ones. The proceeds from muni bonds bankroll state debt, school systems, airports, toll roads, water authorities and subsidized housing projects. If the economy continues to improve, the likelihood of default will fall even more.
You can get higher yields by investing in bonds with lower credit ratings. When you invest in a muni, you're making a loan to the issuer. View the portfolio proxy voting polices and procedures of the Oppenheimer funds. States with poor credit ratings have to pay more in interest, just as people with bad credit do. The best funds are named Lipper Leaders and the remaining are ranked down to the lowest which receive a 5.
Municipal bonds are long-term, interest-bearing IOUs. For investors, however, there's gold in them thar bills. That, in turn, means states and cities will have more money for paying bills. No minimum contribution or distribution, and there are no limits on the number of transactions you can make each year.