Municipal Syndicate Operations
Chapters in this video
- 0:00 How a municipal syndicate is formed
- 1:58 Eastern versus Western account liability
- 2:57 Underwriter's spread and selling concession size
- 4:01 Total takedown versus reallowance
- 5:29 Priority-of-orders ladder and when it is set
- 7:14 Thirty-calendar-day syndicate settlement rule
- 7:47 Rapid-fire exam recap
What this video covers
- How a municipal syndicate is formed, what the syndicate letter governs, and why members submit a good faith deposit
- The difference between Eastern (undivided) accounts with shared liability and Western (divided) accounts with individual liability, including which carries more risk
- The three components of the underwriter's spread and why the selling concession is always the largest piece
- How total takedown is calculated (underwriting fee plus selling concession) and why the management fee is strictly excluded
- What reallowance is and why a non-member dealer earns only this smallest sliver instead of total takedown
- The priority-of-orders ladder (presale, group net, designated, member) and when the senior manager must set it in writing
- The 30-calendar-day settlement rule for syndicate accounts after all bonds are delivered
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