Can it distinguish between GO and Revenue bonds?

Yes, it evaluates General Obligation bonds based on the issuer's taxing power and Revenue bonds based on specific project cash flows and coverage ratios.

Does it handle the de minimis rule for discount bonds?

It checks if a bond is priced below the de minimis threshold (typically par minus 0.25% per year to maturity), which triggers ordinary income tax on the discount.

What credit metrics does it use for muni analysis?

It focuses on Debt Service Coverage Ratios (DSCR) for revenue bonds and debt-per-capita or pension obligations for general obligation bonds.

How does this skill calculate Tax-Equivalent Yield (TEY)?

It uses standardized formulas that incorporate federal marginal rates and state tax rates, accounting for the federal deductibility of state taxes, to provide a true taxable-equivalent comparison.

Municipal Bond Analysis (Fixed Income)

Name: Municipal Bond Analysis (Fixed Income)
Author: JoelLewis

byJoelLewis

•

Data Science & ML

Analyzes municipal bonds and performs complex tax-equivalent yield calculations to optimize tax-aware fixed-income investing.

This skill empowers Claude to provide deep expertise in municipal bond evaluation, focusing on tax-exempt income strategies and relative value analysis. It streamlines the calculation of Federal and State Tax-Equivalent Yields (TEY), compares General Obligation (GO) versus Revenue bond structures, and assesses credit quality through metrics like Debt Service Coverage Ratios (DSCR). Whether navigating Alternative Minimum Tax (AMT) implications or the de minimis tax rule, this skill ensures precise financial analysis for tax-sensitive investment portfolios and wealth management workflows.

Key Features

01Identifies tax implications of the de minimis rule for discount municipal bonds.

02Calculates Federal and State Tax-Equivalent Yields (TEY) for accurate relative value comparison.

03Distinguishes between General Obligation (GO) and Revenue bond credit profiles.

04Analyzes muni-to-Treasury yield ratios to determine market richness or cheapness.

05Evaluates the impact of the Alternative Minimum Tax (AMT) on private activity bonds.

0618 GitHub stars

Use Cases

01Comparing the after-tax yield of an in-state municipal bond against a taxable corporate bond for a high-net-worth client.

02Conducting credit due diligence on revenue bonds by evaluating Debt Service Coverage Ratios (DSCR).

03Determining if a specific municipal bond purchase makes sense based on a user's marginal tax bracket.

What are Skills?·How to Install

Install with 🐟 Skill.Fish

npx skillfish add joellewis/finance_skills fixed-income-municipal

For use in Claude.ai and ChatGPT

Download Skill