Municipal Securities: Rapid Fire
Chapters in this video
- 0:00 GO bonds versus revenue bonds and the DSCR math
- 2:01 Muni notes and hybrid structures: double-barreled and moral obligation
- 2:37 Tax rules and taxable equivalent yield formula
- 4:00 Financing, syndicate liability, and order priority
- 5:42 The crucial exam numbers: 30/360, T+1, 15 minutes, 10 days
- 6:41 Rapid-fire final recap
What this video covers
- How general obligation (GO) bonds differ from revenue bonds on voter approval, backing source, and which sale method matches each
- Why the debt service coverage ratio (DSCR) is 2.0x for most revenue bonds but 1.25x for utility revenue bonds, and what stable demand has to do with it
- When a bond is double-barreled, when it is moral obligation only, and which structure carries more investor protection
- How to compute taxable equivalent yield (TEY) using division, never multiplication, and when to combine federal and state rates for in-state or triple tax-free bonds
- The Eastern (undivided) versus Western (divided) account distinction for syndicate liability, and why shared risk matters
- The exact priority order for syndicate allocations using the "Please Get Dessert Made" memory aid
- Why the legal opinion covers legality and tax status but never creditworthiness, and where munis still face SEC anti-fraud rules despite registration exemption
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