10 High-Yielding Muni Bonds (On the Street)

Published July 14, 2009 at 4:00 a.m.

These municipal bonds have unwieldy names, but they all were available to the public recently, offer excellent after-tax yields for in-state residents and are rated AA or better.

Arizona

Glendale Arizona Western Loop Third, Series C

CUSIP # 378343BB2
After-Tax Yield*: 8.7 percent
Maturity Date: July 1, 2017

Comment: These bonds, issued last October, were sold to help build baseball spring training facilities.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Sources: Investinginbonds.com, Electronic Municipal Market Access, Bloomberg

California

Antelope Valley California Community College District Election 2004, Series B

CUSIP #: 03667PCB6
After-Tax Yield*: 8.5 percent
Maturity date: Aug. 1, 2017

Comment: This bond was issued to help relieve overcrowding and upgrade job training and academic programs in the Antelope Valley Community College district near Los Angeles.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Florida

Miami Florida Rent Revenue, Series 1988

CUSIP #: 593464AA8
After-Tax Yield*: 10.4 percent
Maturity Date: July 1, 2019

Comment: These bonds, issued two decades ago, are financed by taxes collected on hotels, mobile homes and nearly any other dwelling where someone pays rent.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Illinois

Chicago Illinois Transit Authority Sales and Taxable-Pension Funding Series A

CUSIP #: 167725AC4
After-Tax Yield*: 8.6 percent
Maturity Date: Dec. 1, 2040

Comment: The proceeds from these bonds, issued last year, will go into the pension fund of bus drivers and other Chicago area transit workers. They are backed by sales taxes.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Massachusetts

Massachusetts Stat Port Authority Revenue

CUSIP #: 575895CJ4
After-Tax Yield*: 7.9 percent
Maturity Date: July 1, 2011

Comment: This agency routinely sells bonds backed up by money the state gets from airports, bridges and ports.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

New Jersey

New Jersey Economic Development Authority State Pension Funding Revenue, Series1997B

CUSIP #: 645913BB9
After-Tax Yield*: 9.1 percent
Maturity Date: Feb. 15, 2023

Comment: These are zero-coupon bonds, so the interest is accrued at the end when the bond matures.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

New York

New York State Environmental Facilities Corp. State Clean Water Revolving Funds—New York City Muni Water-A

CUSIP: 64986AF55
After-Tax Yield*: 7.7 percent
Maturity Date: June 15, 2038

Comment: A bond issued for water quality protection projects in New York City.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Ohio

Development Assistance Bonds, Series A (Logistics and Distribution Program)

CUSIP # 67755WAX3
After-Tax Yield*: 8.1 percent
Maturity Date: Oct. 1, 2026

Comment: Ohio issued these bonds recently to help build roads and other infrastructure projects.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Pennsylvania

Aqua Pennsylvania bonds, offered through the Pennsylvania Economic Development Financing Authority

Price: $99.90
After-Tax Yield*: 7.7 percent
Maturity Date: Oct. 1, 2039

Comment: These bonds are funding infrastructure improvements to a water utility in Pennsylvania that serves 1.4 million people in 30 counties.

* assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

Texas

San Antonio Texas Electric and Gas Revenue Prerefunded, Series 2000

CUSIP #: 796253NS7
After-Tax Yield*: 8.7 percent
Maturity Date: Feb. 1, 2011

Comment: The bonds are backed by the utility payments of residents in and around San Antonio.

* Assuming in-state resident in the 35% federal tax bracket. Yields as of July 13.

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