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The daily trading volume of municipal bonds is estimated to be $11 billion. Most individual bond holders tend to hold on to their issue until maturity. However, some municipal bonds are actively traded. Given the volume and the number of bonds in the market, it is very difficult to mention 100 largest holders of municipal bonds.
In the US nearly 5.1 million homes own some or the other form of municipal bonds. This holding could be in the form of ownership or through investment in mutual funds, investment trusts and/or bank account trusts. Many commercial banks and insurance companies also hold municipal bonds.
There is no organized exchange where a person can go and purchase a municipal bond. The bonds are sold and bought in the over-the-counter market. This means that you have to buy municipal bonds from banks and brokers. Approximately 2,700 dealers across the US are registered with Municipal Securities Rulemaking Board (MSRB), who are qualified to buy and sell municipal bonds. The rules for municipal bonds are set by MSRB under the aegis of Securities and Exchange Commission. Municipal bonds can be bought through dealers and in certain cases from fund management companies.
Most municipal bonds are tax exempt at local and state level. It is always better to consult your tax and financial planner to get a better idea on the tax aspect of municipal bond interest payments.
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