Alabama Bonds (Alabama Municipal Bonds)

By: EconomyWatch Content   Date: 6 November 2009

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EconomyWatch, Content Team

 

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One of the safest ways to invest is in bonds. Bonds ensure more money on an initial investment with fewer risks involved. There are several bond markets. Municipal bonds are the best known and the most secure in the bond market. Bond markets are essentially based around the buying and selling of bonds in states or cities. Usually the money from these bonds is initially used to build new schools or other public systems. The critical parts of municipal bonds include:

·        Risk

·        Asset Allocation

·        Diversification

 

Alabama Bonds (Alabama Municipal Bonds): Various Trades

 

University of Alabama: Standard and Poor’s has assigned an AA- long term rating to the University of Alabama’s Board of Trustees. The deal was worth $183 million and the bond nature was a fixed rate of series 2009A and 2009B. The bond matures on July 2039 and has a coupon of 6.28%.

 

Jefferson State Community College: The State Board of Education, Alabama approved a 25-year limited obligation bond to the Jefferson State Community College, worth $24 million, for the benefit of the institution. The estimated debt service on the 25-year bond issue is approximately $1.6 million annually and will be paid through student tuition and fee revenues.

 

Mobile County, Alabama: Standard and Poor’s has raised its ratings from AA to A- on the Mobile County Board of School Commissioner. The upgrade was based on the county's continued tax base growth and satisfactory financial position.

 

Northport, Alabama: The city council Northport, Alabama, decided in January 2009 to release a 20-year bond worth more than $32 million for city projects. Some of the agencies that were beneficiaries of this deal include:

·        Airtech Inc., for construction materials, new fire station, fire department, etc.

·        Physio-Control Inc., for annual maintenance agreement for life packs, fire department, etc.

·        Dogan Metal Products, for steel construction work, new fire station, fire department, etc.

·        Jim House and Associates, for water treatment pneumatic pump repair.

 

If one invests in a long-term bond of ten or more years, there is a chance of making a fairly large amount of money. Most bonds also have a fixed value that they are worth. Instead of deciding exactly how much money one would like to give to a school, bank or other organizations for bonds, he/she needs to buy a certain number of bonds that have fixed prices.


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