Market Analysis for Municipal Securities

What this video covers

• The composition of the Bond Buyer 20 (BB20) and Bond Buyer 11 (BB11) General Obligation Bond Indexes: 20 bonds versus 11 bonds, and why the smaller index has the lower yield
• Why the BB11 yield is lower than the BB20 yield despite the smaller number, because AA-rated bonds command higher prices and lower yields than A-rated bonds
• The Revenue Bond Index (RevDex): 25 revenue bonds with 30-year maturities backed by tolls, fees, or projects rather than taxes
• How the 40-Bond Municipal Bond Index breaks all the other rules: it is a daily, secondary-market, dollar-price index rather than a weekly new-issue yield index
• Visible supply as a forward-looking indicator: total new issues scheduled for the next 30 days and why high visible supply puts upward pressure on yields
• Placement ratio as a backward-looking indicator: percentage of prior week new issues that sold, and what high or low ratios signal about market absorption
• The exam's favorite trap of mixing directional focus, publication frequency, or index type between the four Bond Buyer benchmarks