Blue List
The blue list is a daily listing of bonds, mostly of the tax-exempt municipal variety, that are currently for sale by banks and dealers who represent the offerings. Information on the electronic blue list available to investors today include: The name of the bond issuing authority, such as the corporate or state, municipality, or county agency The CUSIP number is a unique identification symbol assigned to all stocks and registered bonds in the United States and Canada. The electronic blue list includes information such as the name of the bond issuing authority, CUSIP, par value, coupon rate, and YTM. The face value, also known as par value, is the amount paid to a bondholder at the maturity date, provided that the issuer does not default or call the bond early. Two main kinds of municipal bonds that would appear on a blue list are general obligation and revenue bonds.
What Is the Blue List?
The blue list is a daily listing of bonds, mostly of the tax-exempt municipal variety, that are currently for sale by banks and dealers who represent the offerings.
Understanding the Blue List
The printed version of the blue list included mainly tax-exempt municipal debt securities. Then, as now, these investment products have basic terms defined, such as the notional amount, interest rate yields, and maturity date. Typically their classification is from their level of default risk, the type of issuer, and income payment cycles.
There are two main kinds of municipal bonds that would have appeared on a blue list.
- A general obligation bond (GO) is issued by governmental entities, but not backed by revenue from a specific project. An example would be a GO bond to fund the construction of a toll road. Dedicated property taxes back some GO bonds while others are payable from general funds.
- A revenue bond secures principal and interest payments through the issuer or sales, fuel, hotel occupancy, or other taxes. When a municipality is a conduit issuer of bonds, a third party covers interest and principal payments.
Electronic Blue List
Historically, a bond's quality rating did not appear on the blue list. Since these listings are now available electronically, this information may now appear depending on the platform in use. Information on the electronic blue list available to investors today include:
Related terms:
Bond : Understanding What a Bond Is
A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. read more
Conduit Issuer
A conduit issuer issues municipal securities to raise capital for projects. A third party or "conduit borrower" uses funds to make payments to investors. read more
Coupon Rate
A coupon rate is the yield paid by a fixed income security, which is the annual coupon payments divided by the bond's face or par value. read more
CUSIP Number
The CUSIP number is an identification number assigned to all stocks and registered bonds by The Committee on Uniform Securities Identification Procedures. read more
Face Value
Face value is the nominal value or dollar value of a security stated by the issuer, also known as "par value" or simply "par." read more
General Obligation (GO) Bond
A general obligation (GO) bond is backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project. read more
What is Maturity Date?
The maturity date is when a debt comes due and all principal and/or interest must be repaid to creditors. read more
Municipal Bond
A municipal bond is a debt security issued by a state, municipality or county to finance its capital expenditures. read more
Notional Principal Amount
Notional principal amount, in an interest rate swap, is the predetermined dollar amounts on which the exchanged interest payments are based. read more
Public Purpose Bond
A public purpose bond is used by municipalities to finance public works as opposed to private purpose bonds. read more