Treasure Islands For Municipal Bonds

Most Americans think of Puerto Rico and the U.S. Virgin Islands as places to take a Caribbean vacation. But these American territories, along with farther-afield Guam and American Samoa, have financing needs, like any other independent state. That means they must issue bonds. And, as it turns out, their munis can be very useful for fixed-income investors on the mainland. This month, when many states' tax-free bonds are maturing or being called and when new issues are scarce, it may pay to go bond shopping in the islands.

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