FYI: When triple-A rated communities such as Chester and Montgomery Counties borrow money — and less-solvent local and state governments, too — investors who buy their bonds typically enjoy federal, state, and local tax exemptions on bond income.
You’d think the tax breaks would give these governments an advantage, letting them sell debt extra cheap, compared with taxable bonds — because muni yields plus tax benefits should tend to equal taxable yields, for borrowers with comparable risk, says Alan Schankel, managing director and municipal bond strategist at Janney Montgomery Scott in Philadelphi
Regards,
Ted
http://www.philly.com/philly/blogs/inq-phillydeals/vanguard-robo-advisers-municipal-bonds-funds-muni-20180511.html
