Magazine

Table: What to Look for


ISSUER

States more dependent on income taxes than sales taxes. Watch out for states or cities where tourism is a major industry.

CREDIT QUALITY

Bonds rated A to AAA by Standard & Poor's are safest for investors.

SECTOR

Bonds issued by utilities that provide essential services-electrical, water, and sewerage-are recession-resistant.

MATURITY

Bonds with maturities of 7 to 15 years offer yields almost as high as 30-year bonds with much less interest-rate risk.

CALL PROTECTION

Buy callable bonds. Relative to noncallable bonds, yields are much higher.


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