: Backed by the "full faith and credit" of the issuer, including their power to tax residents. These are often viewed as the safest munis.
Municipal bonds, or "," are effectively loans you provide to state or local governments to fund public projects like schools, highways, and hospitals. In exchange for your capital, the government pays you regular interest and returns your original investment when the bond matures. Why Investors Buy Munis buying municipal bonds for dummies
: An issuer may "call" or repay the bond early, typically when interest rates drop. This forces you to reinvest your money at a lower rate. : Backed by the "full faith and credit"