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Beyond Stocks: Muni Bonds

If you’re looking for action outside the stock market, you might want to look at muni bonds.

Short for municipal bonds, these financial products are essentially loans – by investing you’re giving money to some government and in exchange they’re giving you return.

Although muni’s may not be as sexy as stocks according to Ben Thompson of Samson Capital they’re quite attractive in their own right. Here’s why:

-Less Volatile Than Stocks
-Overall, High Credit Quality
-The Only Tax Exempt Investment

But that’s not to say they’re entirely without risk. They do carry some risk, albeit less than most stocks.

General Obligation Muni Bonds

LOW VOLATILITY -- MEDIUM VOLATILITY -- HIGH VOLATILITY

Texas New York City California

New Jersey

How can you play it?

Fortunately, if you're an individual investor you don't have to go through the credit ratings of each and every state. You can get diversified exposure through ETFs as well as mutual funds.

Following are just a few ideas:
SPDR Barclays Muni Fund (TFI)
iShares National Muni Bond Fund (MUB)
Vanguard Short Term (VWSTX)
Vanguard Long Term (VWLTX)

* Interested in learning more about muni bonds? Watch the video, now!


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Trader disclosure: On March 30th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (IPI) Call Spread; Najarian Owns (MRVL); Najarian Owns (CLF) Call Spread; Najarian Owns (YUM) Call Spread; Najarian Owns (DOW) Call Spread; Finerman's Firm Is Short (IYR), (IWM), (SPY), (MDY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Preferred; Finerman Owns (BAC), (BAC) Leaps; Finerman's Firm Owns (FLIR); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (GGP); Finerman's Firm Owns (NOK), (OSIP); Finerman's Firm And Finerman Own (WFC); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Is Short (EL); Terranova Is Short (GS); Terranova Is Short (CAL); Terranova Is Short (UAUA); Terranova Is Long May 2010 Crude Oil Futures; Cortes Is Short Euro; Cortes Is Short Treasuries; Cortes Owns (IWM), (IBB) vs. Short S&P; Edwards Owns (TM), (UUP)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (BA) For Clients
Edwards Owns (BAC) For Clients
Edwards Owns (C) For Clients
Edwards Owns (F) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (PGM) For Clients
Edwards Owns (GS) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (MMM) For Clients
Edwards Owns (MOT) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (NFLX) For Clients
Edwards Owns (NOK) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (RIMM) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (T) For Clients
Edwards Owns (TM) For Clients
Edwards Owns (VWSTX) For Clients
Edwards Owns (VWLTX) For Clients
Edwards Owns (VZ) For Clients
Edwards Owns (WFC) For Clients
For Heath Terry
FBR Capital Markets Is a Market Maker Or Liquidity Provider For (NFLX)

For Pip Coburn
Coburn Is A Partner In Buckeye Delta Fund
Buckeye Delta Fund Owns (AAPL)
Buckeye Delta Fund Owns (GOOG)
Buckeye Delta Fund Owns (RIMM)
Buckeye Delta Fund Is Short (MOT)
Buckeye Delta Fund Is Short (YHOO)
Buckeye Delta Fund Is Short (NOK)



CNBC.com with wires

Symbol
Price
 
Change
%Change
ISHARES SP NAFMBF
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TFI
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VANGRD LT TE
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VANGRD ST TE
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