The advance refunding of tax-exempt bonds with taxable bonds is the dominant activity in the municipal markets. This is the major driver of the increase in taxable volume. According to a recent report ...

Callable bonds are a type of bond that the issuer can “call” or redeem before the maturity date. The specifics vary from bond to bond, but callable bonds always have one thing in common — the issuer ...

When companies and governments issue bonds, they do so with a specific maturity date attached to the bond. For example, a five-year corporate bond will pay interest for five years before it’s ...

For example, to analyze a refunding proposal, we need to determine the cost of the outstanding and the refunding bonds on a present-value basis. Earlier this year, I showed that tax-exempt and taxable ...

Bond investors are used to studying features like yield, maturity and credit quality. But many municipal and corporate bonds throw a curve: a “call” feature that ends the income flow, adding a layer ...