North Carolina Bonds (North Carolina Municipal Bonds)

By: EconomyWatch Content   Date: 9 November 2009

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North Carolina bonds can be purchased directly from the issuer. One can also purchase these bonds from other holders. The payment has to be made upfront. The repayment schedule varies depending upon the bond type. These usually pay interest two times a year. These bonds provide tax-exempt income.

North Carolina Bonds: Funds

Here are some popular North Carolina bonds and funds:

 

Nations North Carolina Intermediate Municipal Bond Fund: This fund offers as high a tax-exempt current income as is consistent with the preservation of the principal. The fund invests around 80% of the assets in investment grade intermediate-term municipal securities and around 20% in debt securities that is not exempted from tax. It also invests in securities on which the federal alternative minimum tax is levied and municipal high yield debt securities. The fund allocates its assets in insured bonds, general obligation bonds, pre-refunded bonds and revenue bonds.

 

FirstHealth North Carolina Ser 2009C Bonds: FirstHealth is a healthcare system and has been assigned an 'AA' rating by Fitch. It also issues bank qualified bonds with the purpose of refunding outstanding variable-rate demand bonds. The fund features outstanding indebtedness and has a stable rating outlook. It holds a dominant position in terms of market share, an outstanding liquidity position, sound debt service coverage and good operating performance. According to Fitch, the ability of FirstHealth to pay debt service is quite strong.

 

Maria Parham Hosp (North Carolina) Bonds: Maria Parham Medical Center is an acute care hospital with over 100 licensed beds. The hospital updated its patient units and minimal capital needs in 2008. However, it features unpredictable inpatient volume trends, a weak payor mix and high debt burden.

 

Some other municipal bonds in North Carolina are:

  • Dare County North Carolina Certificates Participation

  • Durham North Carolina Series B

  • Guilford County North Carolina Public Improvement Series A

  • North Carolina Medical Care Commission Duke University Health System Series A

  • Lincolnton North Carolina Enterprise System Refunding Comb 

North Carolina Bonds: Taxable Bonds

Issuers also sell taxable municipal bonds as the funding of certain activities performed by the issuers is not subsidized. This prevents investors from evading tax. Some examples of taxable bonds include investor-led housing, borrowing to replenish an underfunded pension plan of a municipality, refunding of a refunded issue and local sports facilities. However, these bonds offer high yield compared to tax-exempt municipal bonds. The taxable municipal market has grown in size.

 




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