Municipal bond investing
Secure your future financial needs with tax-free institutional grade munis issued from cities, counties, and local governments and organizations across all 50 states.
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We connect clients to the liquidity, security and diversity of municipal bonds across the US
Our seasoned team of sales, traders and senior underwriters monitor the primary market and actively participate in the secondary market, trading municipal bonds issued in all 50 states.
StoneX’s Municipal Securities market capabilities and offerings have expanded significantly with the addition of sales desks in several new locations across the country.
Our Municipal Securities department specializes in providing liquidity for investment grade lot sizes from 250m to 4mm. We underwrite competitive issues via a syndicate; however, we will bid alone at times and last year StoneX bought 39 deals for an average amount of $312mm.
By the numbers
Balance Sheet
$200mm
across tax-exempt and taxable municipal bonds
Trade Volume
50k
trades for $22B par traded in the past year
Competitive Underwriting Volume
Sole Manager on 40+ deals
$250mm in volume
Co-manager on 350+ deals totaling
$4.4B+
Sales & trading
Institutional salespeople
Tax-exempt traders
Underwriters
Taxable trader
In Q4 2023, the StoneX Municipal Securities desks launched an advanced algorithmic trading engine providing liquidity for lots from 5 bonds to 250 bonds.
Why trade municipal bonds?
Benefits of municipal bonds:
Tax-free interest
Interest income from most municipal bonds is often exempt from federal income tax and may also be exempt from state income taxes.
Predictable income
Most municipal bonds pay interest twice a year, so you will receive a known payment amount unless there is a default.
Low chance of default
Local taxes or user fees from essential services typically back bond payments, so default chances are low.
Local investment opportunity
Living in the issuing municipality or being personally vested in a funded project enhances comfort in making investment decisions.
Risks of municipal bonds
Material events
Municipal issuers provide regular ongoing disclosure about certain events that might affect the value of the securities they have issued.
Extraordinary redemption
An extraordinary redemption provision gives issuers the right to call bonds due to unforeseen, unusual or catastrophic circumstances.
Credit risk
This is the risk of a default, a credit downgrade or change in credit spread.
Liquidity
The harder it is to sell a security or the more significant the loss in value resulting from a sale, the greater the liquidity risk.
Alternative Minimum Tax (AMT)
Some municipal bonds are subject to the AMT, which is an alternative way of computing taxes mandated by the IRS for income over specific levels.
Why choose StoneX for municipal bonds?
A StoneX municipal bond allocation can serve four critical roles of fixed income in a balanced portfolio:
Equity diversification
When stocks struggle, owning bonds with a low correlation to equities can help lower portfolio volatility.
Capital preservation
A fixed income allocation should help protect the principal in most market environments.
Income
Providing dependable income is a central function of a bond allocation.
Inflation protection
Bonds directly linked to the Consumer Price Index can help to protect purchasing power.
Our clients
We focus on building strong relationships with our clients and proudly serve them with unparalleled, award-winning customer service, daily liquidity, and timely trade ideas.
Funds
Separately managed accounts
Exchange-traded funds
Closed-end funds
Registered investment advisor
Banks
Insurance companies
High net worth retail
Why choose StoneX?
StoneX's market expertise, advanced platforms, global reach, culture of full transparency, and commitment to our client's success all set us apart in the financial marketplace.
Globality
With 70+ offices across six continents, our global reach offers clients a key market advantage. With access to 40 exchanges and 180+ foreign exchange markets, StoneX's opportunities cover the globe.
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As a regulated and publicly traded company, StoneX is subject to stringent corporate governance, financial reporting and disclosure requirements. Our financials are a matter of public record. We work to enhance every client relationship with honesty and trust.
Expertise
The StoneX commitment to boots-on-the-ground knowledge in our markets offers clients the local insights they need to succeed. We seek the best-in-class market intelligence and deliver world-class customer service around the globe.
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Upcoming events
15
October
8th StoneX Multicommodities Seminar
Webinars
|
South America
|
Language: Português Brasileiro
StoneX’s largest event, aimed at bringing together market analysis and experts to provide an up-to-date and strategic overview of key agricultural markets, as well as fertilizers, energy, foreign exchange, and macroeconomics.
15
October
8th StoneX Multicommodities Seminar
Webinars
|
South America
|
Language: Português Brasileiro
StoneX’s largest event, aimed at bringing together market analysis and experts to provide an up-to-date and strategic overview of key agricultural markets, as well as fertilizers, energy, foreign exchange, and macroeconomics.
21
October
Sugar Breakfast StoneX
Live StoneX events
|
South America
|
Language: Português Brasileiro
A strategic event that brings together StoneX risk management consultants to foster networking, updates, and planning.