Municipal bond
A municipal bond (English Municipal bond ) is a bond that is issued or issued by a city or community and in particular the U.S. states.
Requires a municipality to fund financial resources to the construction of a public building or the budget, comes in addition to the possibility of borrowing and the issuance of a municipal bond into account. This is as described in chapter 6.4 a securitized bond issued by a municipality, with receiving this financial capital market borrowings and committed by guilt promise to repay. A listing on the stock exchange is possible. While municipal bonds in Germany with a few exceptions (Chapter 9) are still largely unknown and rarely used to finance, they are a popular financing tool in the United States. There, the " Municipal Bonds" said the bonds (see Section 6.4 ), or loan instruments ( debt securities ), by Federal States ( federal states ), districts ( counties ), cities ( cities ) and other governmental authorities (other governmental entities ) output. This " Munis " finance issuers, among others Parts of their budgets ( budget). Mostly, however, be targeted projects, inter alia, Schools, colleges, public buildings and in particular the infrastructure such as roads, highways (including toll roads ), bridges and airports financed. In addition to the financing of electric power plants, and renewable energies are now supported ( Section 8.2). Source: Climate Bonds - Municipal bonds: analysis of the potentials for the financing of the energy transition at the local level (Book of Christian Limbach, 2013), http://www.amazon.de/Climate-Bonds-Kommunalanleihen-Finanzierung-Energiewende/dp/3869245077/ref=sr_1_1?ie=UTF8&qid=1383488769&sr=8-1&keywords=climate bonds (Page 23)
Background
U.S. Muncipal Bonds are popular because of their tax benefits and form a market of about 2,720 billion U.S. dollars.
Ever since the 1812 Municipal bonds are used as a financing tool of the public sector in the U.S. officially. At that time, the city of New York funded as the construction of a sewer. Especially in the last 40 years, municipal bonds have become an important funding the public sector. Were still issued in 1975 by Municipal Bonds U.S. $ 26.0 billion, the emission value for 1999 was U.S. $ 263.8 billion already. During the global financial Kriese emission levels reached in the years 2007 & 2010 peak values of up to 429.3 billion U.S. $ ( 2007) and 433 billion U.S. $ ( 2010). In 2011, the emission values were U.S. $ 294.6 billion. The first quarter of 2012 shows with U.S. $ 78.6 billion again a significant increase over the first quarter of 2011 ( 47.9 billion U.S. $). The holdings of the open Municipal bonds have increased nearly tenfold from 1980 ( 399.4 billion U.S. dollars ) to 2011 ( U.S. $ 3743.3 billion). (Climate Bonds - Municipal bonds: analysis of the potentials for the financing of the energy transition at the local level, page 24, by Christian Limbach ) http://www.amazon.de/Climate-Bonds-Kommunalanleihen-Finanzierung-Energiewende/dp/3869245077/ref=sr_1_1?ie=UTF8&qid=1383488769&sr=8-1&keywords=climate bonds