Individual investors hold the largest share of municipal bonds, so if you don’t know anyone else who owns them, you’ve probably heard of some famous people who do.

Over the years, we’ve highlighted a few bold-faced names who buy tax-free bonds, including Warren Buffett (“Look Who’s Buying Muni Bonds”) and Bill Gross (“Look Who’s Buying Bonds Part III”).

We also noted the Walton clan, heirs to the Walmart fortune, have plowed their investment dollars into municipals (“Famous Family Boosts Their Bonds”). Suze Orman is a devotee, too.

Now comes word that another affluent individual investor, this time the nominee for Education Secretary, has significant municipal bond holdings.

Federal filings indicate Linda McMahon, former professional wrestler and wrestling executive, owns 78 different blocks of bonds that fund public education projects, including 64 issued to K-12 school districts or agencies. Conservative estimates peg her tax-free earnings at $900,000 per year.

Individual investors dominate the muni market

We’re not surprised that well-known people own bonds (though it’s interesting to note), but it shouldn’t obscure just how prevalent muni ownership is among the wider investing public.

In the $4.2 trillion municipal market, individuals own more than 41% of all bonds issued, while mutual funds – also for the most part individual investors – are the second largest holder of muni owners at almost 28%.

Not only do municipal bonds play a central role in financing public infrastructure, but they’re also a hit with investors, which makes today’s market especially noteworthy.

Generations of investors avoid trying to time the market – smartly, in our view – and instead put their money to work as it becomes available.

However, elevated yields and volatile equities are fueling an especially strong appetite for municipals of various maturities.

“The current municipal yield curve is the steepest in three years, rewarding investors along the entire curve,” Raymond James said in a report.

Yields rarely seen

In fact, yields are reaching heights rarely seen.

The Bloomberg Municipal Long Bond Index was recently yielding approximately 6.91% on a yield-to-worst, tax-equivalent basis – and it’s only breached 7.00% 11 times since 2007, according to J.P. Morgan.

As conditions today are similar to those in previous years, “the market looks attractive for U.S. taxpaying investors over the next two years – if they lock in the yield now,” the firm said.

The fact that people in the public eye invest in munis can’t hide what bonds really are: boring and dependable. A-listers, it turns out, want a good night’s sleep, too, as they generate a steady stream of tax-free income.

We think Buffett had it right when he told Berkshire shareholders: “Beware the investment activity that produces applause; the great moves are usually greeted by yawns.”