FAQ

Municipal Bonds

Tax-exempt Bond

Taxable Bond

• Tax-Backed Debt: These are obligations secured by some form of tax revenue. The broadest type of tax-backed debt obligation is the general obligation debt. Other types that fall into the category of tax-backed debt are appropriation-backed obligations, debt obligations supported by public credit enhancement programs, and short-term debt instruments. (Fabozzi, Frank J. (2009). Institutional Investment Management: Equity and Bond Portfolio Strategies and Applications. Hoboken: John Wiley & Sons, Inc.)
• Revenue Bond

Appropriation Debt: Bond issues of some agencies or authorities carry a potential state liability for making up shortfalls in the issuing entity’s obligation. (Fabozzi, Frank J. (2009). Institutional Investment Management: Equity and Bond Portfolio Strategies and Applications.Hoboken: John Wiley & Sons, Inc.)

Primary Market

Retail Ordering Period

Pricing Date: This is the actual date on which the price is set for the security which is being offered.

Secondary Market

Preliminary Official Statement (POS)

Official Statement (OS)

Maturity Date

• Step 1- Open a brokerage account: In order to purchase any bonds, you must have an account established with one of the brokerage firms participating in the bond sale. To view a list of participating firms, please see upcoming new issuances.
• Step 2- Learn about the State of Indiana bonds: Bonds can only be offered through an Official Statement. Download and read the Preliminary Official Statement to learn about the bonds being offered, including their security, maturity dates, credit rating, the types of projects they finance and other information you may find important to help you make an informed investment decision. This website is not an offer to sell or a solicitation of offers to buy any bonds.
• Step 3- Place your order: Contact the broker with whom you have an account, either online or by phone, to get more information about how to buy bonds during the retail order period.

The IFA primarily issues Appropriation-Backed Debt. As required by the Indiana Constitution, (Article 10, Section 5), the State of Indiana does not issue General Obligation (GO) Debt. The IFA also issues conduit debt; a key point is that this debt is the responsibility of the conduit borrower. Investors in conduit debt should not look to the IFA or the State of Indiana as a guarantor of this debt.

The IFA receives annual ratings from the municipal debt rating agencies of Standard & Poor’s, Moody’s, and Fitch Ratings.