Treasuries, Corporates & Munis
Bonds come from three main kinds of issuers: the U.S. government, companies and states or cities. Each offers a different mix of safety, yield and tax treatment. Here is how they compare.
The three main types
| Treasuries | Corporate bonds | Municipal bonds | |
|---|---|---|---|
| Issuer | U.S. government | Companies | States, cities, agencies |
| Credit risk | Lowest | Low to high | Generally low |
| Yield | Baseline | Higher, to pay for risk | Often lower, because of tax benefits |
| Federal income tax | Yes | Yes | Usually exempt |
| State income tax | Exempt | Yes | Often exempt in your home state |
General features; individual bonds vary.
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