Municipal Securities Primary Financing
Chapters in this video
- 0:00 Municipal bonds skip SEC registration entirely
- 1:41 Three methods of sale: competitive, negotiated, private placement
- 3:05 Advance refunding and the 2017 tax law trap
- 4:25 Syndicate priority: presale, group net, designated, member
- 6:23 Official statements and MSRB disclosure rules
- 7:55 Rapid-fire exam recap
What this video covers
- Why municipal securities are exempt from SEC registration under the Securities Act of 1933 and which regulator actually governs them
- How competitive sales, negotiated sales, and private placements differ in price determination and buyer access
- What the notice of sale contains and why it matters for competitive bidding
- How advance refunding works, why the Tax Cuts and Jobs Act of 2017 killed tax-exempt advance refundings, and when a current refunding applies (90 days)
- The four syndicate priority order types and why only the customer-over-member ranking is fixed by MSRB rule
- What written priority provisions must cover and when the syndicate manager must disclose them
- Why the official statement is the municipal equivalent of a corporate prospectus, when it must be delivered to customers, and where it must be submitted
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