If it’s security and a better tax position, then it’s municipal bonds—why— regular bonds are generally issues by larger companies s to raise capital. When a company issues bonds, it agrees to pay its bondholders a certain amount of interest over a preset period of time and then repay their principal investments at a predetermined date. As an investor, you can make money by collecting those interest payments for as long as you hold your bonds. However, those interest payments will be subject to taxes. This means that if you buy corporate bonds paying $800 in interest annually and your effective tax rate is 25%, you'll lose $200 of that income to taxes.