Municipal Bonds
Debt of states, cities, and other political subdivisions; general obligation (GO) bonds are backed by taxing power, while revenue bonds are repaid from the earnings of a specific facility such as a toll road.
Capital gains on munis ARE taxable — only the coupon interest is tax-advantaged, and some private-activity munis are subject to AMT. The MSRB writes the rules for municipal dealers, and official statements (not prospectuses) are the disclosure documents for new muni issues.