Wednesday, April 23, 2014

municipal securities outline

Bond Buyer

  • online
  • for underwriters only
  • Bond Buyer Revenue index, 25 bonds
General obligation indexes
  • GO 11 index, AA rating
  • GO 20 index, A+ (A1)
  • GO 40 index, BBB
Munifact wire
  • info on new issues in primary & secondary markets
  • info a)issuer b)indenture, c)information for analyzing ratings, d) no prices/yields
Kenny wire, C-wire
  • services for secondary trading
GO 40 index is composed of which of the following:
  • General obligation bonds of 20-years to maturity.
  • all GO indexes are 20 year bonds
  • Revenue Index has 25 bonds,  30 year bonds
  • GO index has 11 bonds, 20 bonds and 40 bonds
Interdealer trading
  • trading between bond traders
Broker's broker
  • NEVER act as a market maker
  • help dealers find a wanted bond
  • help institutions buy and sell bonds
  • help large buyers stay anonymous
  • act as a broker
  • NEVER as a principal
individual investors
  • household investors 
  • higher tax brackets
  • want yield exempt from taxes
institutional investors
  • buy large amounts of bonds at one time
  • commercial banks
  • insurance companies
  • bond mutual fund
  • buy large quantities
  • can buy whole issue 
A broker's broker is used to doing which of the following?
  • find bonds for another broker/dealer and act as an agent in buying them. 
  • go between, help other broker's find and buy bonds

No comments:

Post a Comment