Before investing in bonds, you should carefully consider and understand the risks involved. All bonds are subject to credit risk, market risk and interest rate risk and you may lose money. Bonds sold by issuers with lower credit ratings may offer higher yields than bonds issued by higher-rated or "investment grade" issuers, but are usually associated with higher risks. High-yield bonds generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue. In addition, high-yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.
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There are certain risks associated with investing in municipal bonds, and such debt securities may not be suitable for every investor. Investors should determine whether investing in such instruments is consistent with their financial circumstances, investment objectives, risk tolerance, tax status, and liquidity needs. Interest on municipal bonds is generally exempt from federal income tax; however, some bonds may be subject to the alternative minimum tax (AMT). Also, municipal bonds acquired in the secondary market at a discount may be subject to the market discount tax provisions, and therefore could give rise to taxable income. The yield offered by a municipal bond generally increases with the risk of the bond and the time to maturity. Municipal bonds are subject to interest rate risk, and a full return of principal investment is not guaranteed.

Investors should review all material information about the security available in the issuer's offering documents, including the risk disclosures, before purchasing a municipal bond. Some official statements and other issuer documents are available and free to the public through the Municipal Securities Rulemaking Board's online Electronic Municipal Market Access ("EMMA") system.

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