Muni mania

A variety of structured products based on US municipal bonds has sprung up this year, enabling investors to benefit from the steepness of the muni yield curve. Asian investors, in particular, have been big buyers - but are they fully aware of the US tax risk they are taking on?


Municipal bonds have been a favourite of 'mom and pop' investors in the US for years. The tax-exempt status of these instruments - domestic investors don't have to pay US federal taxes on any interest income - has been a big draw for mutual funds, insurance companies and retail investors. However, municipal bonds have also roused the interest of investors outside the US. In particular, there has been strong demand from European and Asian investors for structured products based on municipal bonds

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here