Daily Coffee Report 7/17/26
StoneX Coffee Team
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Municipal bond investing
Secure your future financial needs with tax-free institutional grade munis issued from cities, counties, and local governments and organizations across all 50 states.
Related services
Get the competitive edge you need in the financial markets with access to our full suite of services.
Risk management
Work with our experienced advisors to help mitigate operational and financial risk for your business.
Listed derivatives
With access to 40+ derivatives exchanges, StoneX provides leading clearing and execution on securities, commodities, currencies, indices and more.
OTC derivatives
We offer 300 customizable OTC products and 22 structured products that align more closely with your hedging needs.
We connect clients to the liquidity, security and diversity of municipal bonds across the US
Our seasoned team of sales, traders and senior underwriters monitor the primary market and actively participate in the secondary market, trading municipal bonds issued in all 50 states.
StoneX’s Municipal Securities market capabilities and offerings have expanded significantly with the addition of sales desks in several new locations across the country.
Our Municipal Securities department specializes in providing liquidity for investment grade lot sizes from 250m to 4mm. We underwrite competitive issues via a syndicate; however, we will bid alone at times and last year StoneX bought 39 deals for an average amount of $312mm.
By the numbers
Balance Sheet
$200mm
across tax-exempt and taxable municipal bonds
Trade Volume
50k
trades for $22B par traded in the past year
Competitive Underwriting Volume
Sole Manager on 40+ deals
$250mm in volume
Co-manager on 350+ deals totaling
$4.4B+
Sales & trading
Institutional salespeople
Tax-exempt traders
Underwriters
Taxable trader
In Q4 2023, the StoneX Municipal Securities desks launched an advanced algorithmic trading engine providing liquidity for lots from 5 bonds to 250 bonds.
Why trade municipal bonds?
Benefits of municipal bonds:
Tax-free interest
Interest income from most municipal bonds is often exempt from federal income tax and may also be exempt from state income taxes.
Predictable income
Most municipal bonds pay interest twice a year, so you will receive a known payment amount unless there is a default.
Low chance of default
Local taxes or user fees from essential services typically back bond payments, so default chances are low.
Local investment opportunity
Living in the issuing municipality or being personally vested in a funded project enhances comfort in making investment decisions.
Risks of municipal bonds
Material events
Municipal issuers provide regular ongoing disclosure about certain events that might affect the value of the securities they have issued.
Extraordinary redemption
An extraordinary redemption provision gives issuers the right to call bonds due to unforeseen, unusual or catastrophic circumstances.
Credit risk
This is the risk of a default, a credit downgrade or change in credit spread.
Liquidity
The harder it is to sell a security or the more significant the loss in value resulting from a sale, the greater the liquidity risk.
Alternative Minimum Tax (AMT)
Some municipal bonds are subject to the AMT, which is an alternative way of computing taxes mandated by the IRS for income over specific levels.
Why choose StoneX for municipal bonds?
A StoneX municipal bond allocation can serve four critical roles of fixed income in a balanced portfolio:
Equity diversification
When stocks struggle, owning bonds with a low correlation to equities can help lower portfolio volatility.
Capital preservation
A fixed income allocation should help protect the principal in most market environments.
Income
Providing dependable income is a central function of a bond allocation.
Inflation protection
Bonds directly linked to the Consumer Price Index can help to protect purchasing power.
Our clients
We focus on building strong relationships with our clients and proudly serve them with unparalleled, award-winning customer service, daily liquidity, and timely trade ideas.
Funds
Separately managed accounts
Exchange-traded funds
Closed-end funds
Registered investment advisor
Banks
Insurance companies
High net worth retail
Why choose StoneX?
StoneX's market expertise, advanced platforms, global reach, culture of full transparency, and commitment to our client's success all set us apart in the financial marketplace.
Globality
With 70+ offices across six continents, our global reach offers clients a key market advantage. With access to 40 exchanges and 180+ foreign exchange markets, StoneX's opportunities cover the globe.
Transparency
As a regulated and publicly traded company, StoneX is subject to stringent corporate governance, financial reporting and disclosure requirements. Our financials are a matter of public record. We work to enhance every client relationship with honesty and trust.
Expertise
The StoneX commitment to boots-on-the-ground knowledge in our markets offers clients the local insights they need to succeed. We seek the best-in-class market intelligence and deliver world-class customer service around the globe.
Market Intelligence
Stay one step ahead of the markets with deep data and incisive commentary from our award-winning traders and analysts across the globe.
Market Intelligence: Recent articles
Discover more insights
Dive into comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
Upcoming events
Fertilizer Risk Academy
StoneX events|North America|Language: English
July 21 - July 22, 2026
Wichita, KS OR Joplin, MO
Join us for a Fertilizer Risk Academy, a program designed to help farmers, retailers, and producers learn how to use risk management strategies to mitigate risk. This program will provide a better understanding of extremely volatile fertilizer prices, fertilizer availability, logistical challenges, labor shortages, and seasonal markets. Additionally, it will provide an understanding of the hedging instruments required to mitigate risk.
Ag in Motion
Third party events|North America|Language: English
July 21 - July 23, 2026
Langham, Saskatchewan, Canada
StoneX is looking forward to Ag in Motion in Langham, Saskatchewan. Visit the StoneX Know Risk Canada team in Tent AG24 in the FCC Pavilion to discuss commodity hedging, OTC trading opportunities and risk management considerations for Western Canadian producers across grains and oilseeds, energy and fertilizer.
Our team will be available to discuss how StoneX market intelligence and advisory support can help producers make informed decisions in changing commodity markets.
Minnesota Farmfest
Third party events|North America|Language: English
August 04 - August 06, 2026
Redwood County, MN
StoneX will be at the Minnesota Farmfest, Aug 4-6 in Redwood County, MN. Visit booth #C-2102 to explore StoneX’s Farm Advantage App, designed for agricultural producers and farmers to manage price risk, track margins, and make informed crop marketing decisions.
Municipal bonds FAQ
StoneX: We open markets
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
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The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.
This website is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.
StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. References to securities trading and prime services are made on behalf of the BD Division of SFI. References to exchange-traded futures and options are made on behalf of the FCM Division of SFI. You can learn more about the background of StoneX Financial Inc. on BrokerCheck.
Wealth management services are offered through StoneX Wealth Management, a trade name used by StoneX Securities Inc., member FINRA/SIPC and StoneX Advisors Inc. StoneX Securities Inc. and StoneX Advisors Inc. are wholly owned subsidiaries of StoneX Group Inc. You can learn more about the background of StoneX Securities Inc. on BrokerCheck.
StoneX One is a proprietary online trading platform through which investors and traders can open securities accounts. Accounts opened through StoneX One are currently available to U.S. persons only. Not all products are available. StoneX One accounts opened through StoneX Securities Inc. are introduced to and custodied at StoneX Financial Inc. (SFI), and all customer orders will be transmitted to SFI for execution, clearance and settlement.
Securities products offered by StoneX Financial Inc. (“SFI”) are intended only for an audience of institutional clients only. Securities products offered by StoneX Securities Inc. and investment advisory services offered by StoneX Advisors Inc. are intended for an audience of retail clients only.
This information is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX Group Inc. of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you.
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