Capital Markets Examiner School, Providence, RI

Municipal Securities

 Muni Securities – The bread and butter of the community bank investment portfolio

 Tax Benefits

 Attractive Yields

 Community Investment  Many banks have good local/regional knowledge of issuers

 Call Protection

Municipal Securities

 General Obligation Bonds (GO)  Generally stronger than most revenue bonds but not perfect

 Revenue Bonds (REV)  Quality can range widely from essential services such as water & sewer to risky continuing care retirement communities and apartment complexes with very narrow revenue bases