F211. Municipal Bonds; Municipal Loans

Federal Reserve definition for F211 flow of funds table

Municipal securities and loans are obligations issued primarily by state and local governments.

The category consists of long-term and short-term securities.

It excludes the trade debt of state and local governments and U.S. government loans to them.

A portion of municipal debt outstanding — the amount issued by nonprofit hospitals and that issued by nongovernmental entities to finance activities such as lending to students, along with public-purpose investment undertaken by private entities — is owed by the households and nonprofit organizations sector and the nonfarm nonfinancial corporate business sector.

Some municipal issues are included as loan assets on the balance sheet of holders.

Most municipal debt is tax-exempt from federal income tax.

Since 1986, however, a small portion of the debt issued (about 3 percent of gross issuance of long-term securities in recent years) has been taxable.

The two types of debt are not shown separately in the flow of funds accounts.

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