The Changing Market for Tax-Exempt Bonds.

The most important factor that has been affecting both the size and nature of the potential market for tax-exempt bonds is the rising ratio of "take home" interest on these bonds, compared to that on taxable bonds. The reasons behind this sharp rise in the ratio in recent years are examined and measures that must be taken in order to take advantage of this changing market are investigated. The investor's choice between purchasing taxable and non-taxable bonds is explored, and the implications of ensuing market changes are considered.