How do I invest in NYC bonds?
1) Open or have a brokerage account: Bonds are sold only through licensed broker-dealers, who can help determine if the bonds are a suitable investment. Investors must have an open brokerage account in advance of the bond sale to place orders for the bonds.
2) Research the bonds: Before purchasing a New York City bond, prospective investors should conduct their own due diligence by reading the Preliminary Official Statement and Official Statement for that bond issue, which includes complete information on the credit and finances. Preliminary Official Statements and Official Statements for current New York City bond offerings are available through the broker-dealers that participate in the sale of that bond issue. For investment advice on bonds, contact your investment advisor.
3) Prepare and place an order for bonds: Contact your broker ahead of the bond sale to discuss your questions, preferences, and options. New York City seeks to make its bonds available to all interested investors. Bonds are typically offered over several days, during which individual investors have the first opportunity to place orders for the bonds. See Notice and Disclaimer below.
The Comptroller’s Office typically advertises bond sales. Join the investor relations mailing list to receive notice of upcoming sales.
NYC Bonds and Taxes
For residents of New York City, City bonds may be triple-tax exempt. This means that New York City residents who buy tax-exempt bonds may not have to pay federal, New York State, or New York City income taxes on the interest they receive.
The City also regularly sells federally-taxable bonds. Outstanding taxable bonds include both standard City bonds and special federally-taxable bonds sold under the American Recovery and Reinvestment Act, known as Build America Bonds (BABs) and Qualified School Construction Bonds (QSCBs).
Investors should check with their financial advisor or broker regarding the tax status of a bond and consult with their tax professional before making a purchase decision.