California Municipal Bonds
Alamo Capital is a full-service Broker Dealer of California bonds. We have a long-standing relationship with the State of California and have been involved in many California municipal bond issues since our inception in 1987. Alamo Capital has served as the Co-Senior Manager, Co-Manager and as a Selling Group Member in the underwriting of California bonds and has experience with many types of California bond issues. As an Underwriter of California municipal bonds, we can offer our clients exclusive access to specific California bonds, providing an advantage to our clients that they just can’t get at other financial firms.
What are California Bonds?
A California municipal bond is a bond issued by cities, local governments or their agencies within the state of California. California municipal bonds finance investments in roads, schools, parks, public utilities, housing, publicly owned airports and seaports, levees, public facilities and other crucial construction and infrastructure projects in the state of California.
California municipal bonds may be general obligations of the issuer or may be secured by specified revenues. They can be short or long term issues, generally ranging from 1 – 30 years to maturity.
Benefits of California Municipal Bonds
- Tax-exempt status – Most California municipal bonds are tax-exempt, although some specific bonds are not exempt from federal income taxation (all are exempt from State of California personal income taxation for California residents, however). Designation of a bond as a “tax-exempt California municipal bond” is dependent on the program being funded by the bond issue.
- Predictable income stream – California municipal bonds offer a steady and predictable stream of interest payments that is typically tax-exempt from federal and state income taxation. This dependable income stream is one reason why some investors include California municipal bonds as part of a diversified investment portfolio.
- Support California’s infrastructure – In addition to their potential financial benefits, the purchase of California bonds helps to support the building and maintenance of California’s infrastructure, improving quality of life in the state of California.
ACAP Trading offers primary and secondary liquidity on California bonds and offerings can be found on B.O.L.T.S.™. To view our Bonds On-Line Trading System™, please click here.