An airport revenue bond is a municipal bond which uses revenues from an airport authority to back the bond

Policy and Procedures Concerning the Use of Airport Revenue; Proceeds From Taxes on Aviation Fuel

An airport revenue bond is a type of municipal bond in which the operating revenue of an airport is used to secure the bond. In addition to airport revenue bonds, other revenue bonds include housing revenue bonds, student loan revenue bonds, highway revenue bonds, and transit revenue bonds. An airport revenue bond is a type of municipal bond in which the operating revenue of an airport is used to secure the bond. They can be exempt from state and local taxes as well if the buyer resides in the same place where the bond is issued.﻿﻿ However, the tax-exempt status of an airport revenue bond depends on the airport's mix of public and private use. Credit analysts rate airport revenue bonds on the amount of traffic the airport receives, how well the airport performs financially, and how likely it is that airlines will continue to use the facility.

Airport Revenue Bond

The American Municipal Bond Assurance Corporation offers insurance against default on municipal bond offerings.

Report of the Examination of Ambac Assurance Corporation New York, New York As of Dec. 31, 2016

The American Municipal Bond Assurance Corporation (Ambac) offers insurance against default on municipal bond offerings. The American Municipal Bond Assurance Corporation (Ambac) began in 1971 as a subsidiary of MGIC Investment Corporation of Milwaukee and offers insurance against default on municipal bond offerings. Ambac remains among the major bond insurers and the market for insurance continues to thrive, though Ambac’s credit ratings declined precipitously following the financial crisis of 2008. Ambac currently goes under the name Ambac Assurance Corporation and serves as a major operating unit of Ambac Financial Group, a New York-based holding company. The American Municipal Bond Assurance Corporation (Ambac) offers insurance against default on municipal bond offerings.

American Municipal Bond Assurance Corporation

An anticipation note is a short-term obligation issued to meet temporary financing needs with the expectation that future cash flows will repay the note.

An anticipation note is a short-term obligation issued to meet temporary financing needs with the expectation that future cash flows will repay the note. There are four different types of anticipation notes:
1.  Tax anticipation notes (TANs), used in anticipation of future tax collections;
2.  Revenue anticipation notes (RANs), issued with the expectation that nontax revenue (such as federal or state aid) will pay the debt;
3.  Tax and revenue anticipation notes (TRANs), which are paid off with a combination of taxes and revenue; and
4.  Bond anticipation notes (BANs), which function as bridge loans and are issued when the municipality expects a future longer-term bond issuance to pay off the anticipation note at maturity.
Hurricane Sandy caused unprecedented damage in coastal towns in New Jersey and New York in 2012. One particularly hard-hit town, Long Beach, New York, which suffered $200 million in damage, issued a $33 million revenue anticipation note shortly after the storm to fund restoration work to the boardwalk area and a $10.4 million revenue anticipation note a couple of years later to finance additional repair work around the town. The four different types of anticipation notes are TANs, RANs, BANs, and TRANs.
Typically, an anticipation note is a short-term obligation that is issued for temporary financing needs by a municipality. An anticipation note is a short-term obligation issued to meet temporary financing needs with the expectation that future cash flows will repay the note.

Anticipation Note

Arbitrage bonds refinance a municipal bond to a lower interest rate.

An arbitrage bond refers to the refinancing of a municipality's higher interest rate bond with a lower interest rate bond prior to the higher interest rate bond's call date. An arbitrage bond refers to the refinancing of a municipality's higher interest rate bond with a lower interest rate bond prior to the higher interest rate bond's call date. An arbitrage bond is the refinancing of a municipality's higher interest rate bond with a lower interest rate bond prior to the higher interest rate bond's call date. In the event that interest rates decline prior to the call date, the municipal authority may issue new bonds (arbitrage bonds), a practice called refunding, with a coupon rate that reflects the lower going market rate. The coupon rate on arbitrage bonds should be significantly below the coupon rate on the higher-interest bonds to make the arbitrage exercise worthwhile.

Arbitrage Bond

"Bid wanted" refers to an investor's announcement that the investor is selling a security, telling interested parties that they can send in bids. 

Bloomberg Introduces New Electronic Trading Platform for Municipal Securities

Recommendations Regarding the Practice of Pennying in the Corporate and Municipal Bond Markets

Bid wanted is an announcement by an investor who holds a security, commodity, or currency. The broker will work with the seller to achieve the best possible price and inform bidders if their offer is well above or below set parameters or seems to have been an error. A bid offer stipulates both the price the potential buyer is willing to pay and the quantity to be purchased at that price. The broker will be an individual or firm and will charge a fee or commission for assisting the investor with the bid wanted process. Brokers will work with the seller to set price parameters for the security, commodity, currency, or other product offered. Pennying occurs when the dealer, after reviewing the auction information received back in a bid wanted, either matches the best price or executes the bond at a price that is slightly better (i.e., a penny more). Using a bid-wanted announcement to obtain bids may not help the seller receive the highest price for a security, but it is likely to provide a much higher level of privacy.

Bid Wanted

Blue list is a daily listing of bonds, mostly of the tax-exempt municipal variety, that are currently for sale by banks and dealers.

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.

Blue List

A bond bank is an independent entity, created by the state, that consolidates local bond issues into a single pool to offer better financing options.

The Relationship between Government Financial Condition and Expected Tax Rates Reflected in Municipal Bond Yields

A bond bank is an independent state-created entity that consolidates local bond issues into a single pool to offer better financing options for state or municipal projects. The bond bank is an independent agency, though its commissioners are appointed by the governor.﻿﻿ The bond bank issues bonds for projects such as the Transcap Bond Program, which helps fund the Maine Department of Transportation; and the Drinking Water SRF Program, which helps the state to maintain clean drinking water supplies for its citizens.﻿﻿ Investors who wish to purchase these bonds A bond bank is an independent state-created entity that consolidates local bond issues into a single pool to offer better financing options for state or municipal projects. A bond bank is an independent entity, created by the state, that consolidates local bond issues into a single pool to offer better financing options for state or municipal projects. Bond banks serve as necessary go-betweens, allowing states to finance infrastructure through massive bond issues, rather than piecemeal through smaller issues controlled directly by the state government, which greatly lowers issuance costs.

Bond Bank

The Bond Buyer 11 (BB11) index is a theoretical and estimated average of bond yields published by The Bond Buyer as a benchmark for municipal bond yields.

The Bond Buyer 11 (BB11) index is a theoretical and estimated average of bond yields that is published by The Bond Buyer, a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds. The Bond Buyer 11 (BB11) index is a theoretical and estimated average of bond yields that is published by The Bond Buyer, a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds. The Bond Buyer is a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds. The Bond Buyer 11 (BB11) index is a theoretical and estimated average of bond yields that is published by The Bond Buyer. Other indexes include the Bond Buyer's Municipal Bond Index, the Revenue Bond Index, the SIFMA index, and the Municipal Market Data (MMD) Curve.

Bond Buyer 11 (BB11)

Bond Buyer 20 is an index of a portfolio of 20 general obligation bonds that mature in 20 years whose value is derived on a survey of bond traders.

State and Local Bonds - Bond Buyer Go 20-Bond Municipal Bond Index (DISCONTINUED)

S&P Municipal Bond 20 Year High Grade Rate Index

State and Local Bonds - Bond Buyer Go 20-Bond Municipal Bond Index (DISCONTINUED)-20-Year Treasury Constant Maturity Rate

2020 Florida Statutes: Title XIV Ch.215 Section 84

Bond Buyer 20 is an index whose value is based on a survey of what municipal bond traders estimate will be the yield of a portfolio of 20 general obligation bonds maturing in 20 years, rather than actual prices or yields. State and local governments can use the derived yield to estimate the maximum interest rate they can offer on new issues.﻿﻿ ﻿﻿ For example, the 2020 Florida statutes note that “bonds may bear interest at a rate not to exceed an average net interest cost rate, which shall be computed by adding 300 basis points to The Bond Buyer “20 Bond Index” published immediately preceding the first day of the calendar month in which the bonds are sold.”
The Bond Buyer Index provides an indication of the average weekly yield of the Bond Buyer 20 Index. The Bond Buyer financial publication publishes the Bond Buyer 20 index in addition to other bond indices, such as the Bond Buyer 11 Index, the Revenue Bond Index (RBI), the SIFMA index, and the Municipal Market Data (MMD) Curve. The Bond Buyer Index is based on the prices of 40 recently issued and actively traded long-term municipal GO and revenue bonds calculated by The Bond Buyer, which expresses the value of the index in points and 1/32ds (thirty-seconds). The average rating of the 20 bonds that make up the index are grade Aa2 (Moody's rating) or grade AA (Standard & Poor’s rating).﻿﻿ Bond Buyer 20 is a representation of municipal bond trends based on a portfolio of 20 general obligation bonds that mature in 20 years.

Bond Buyer 20

The Bond Buyer Index is published by The Bond Buyer, a daily finance newspaper that covers the municipal bond market.

The Bond Buyer Index, also known as the Bond Buyer's Municipal Bond Index or BB40, is a muni bond index published by _The Bond Buyer_, a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds. The Bond Buyer Index, also known as the Bond Buyer's Municipal Bond Index or BB40, is a muni bond index published by _The Bond Buyer_, a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds. The Bond Buyer Index is a daily index of municipal bond prices created by the Chicago Board of Trade and published by _The Bond Buyer._
The Bond Buyer Index, also known as the BB40 index, is based on the prices of 40 recently issued and actively traded long-term municipal bonds. The Bond Buyer Index provides an indication of the average weekly yields of the Bond Buyer 20 (BB20) Index, the Bond Buyer 11 (BB11) Index, the Revenue Bond Index, the SIFMA index, and the Municipal Market Data (MMD) Curve. Investors use the Bond Buyer Index to plot interest rate patterns in the municipal market while traders use it to trade municipal bond index futures and options on the CBOT

Bond Buyer Index

A bond attorney represents municipal bondholders' interests during a bond offering and is able to attest that the issue is legal, valid, and binding.

A bond attorney is a lawyer who represents municipal bondholders' interests during a bond offering and who prepares a legal opinion attesting that the issue is legal, valid, and binding. Some of the bond attorney's responsibilities include:
Helping state or local governments develop strategies for structuring their bond offerings
Attending or presiding over bond hearings
Managing the documentation for the bond issuance
Attesting to the Securities and Exchange Commission (SEC) or other agencies about the validity of a sale
As the American College of Bond Counsel explains, bond lawyers are experts in all facets of municipal issues. A bond attorney is a lawyer who represents municipal bondholders' interests during a bond offering and who prepares a legal opinion attesting that the issue is legal, valid, and binding. A bond attorney is a lawyer who represents municipal bondholders' best interests during a bond offering. When working for a bank, a bond attorney represents the bank that is providing the funding for the municipal project and that will issue the bonds.

Bond Attorney

The Bond Buyer is a trade publication for members of the municipal bond industry that began as a daily newspaper over 100 years ago.

Investcorp Sells SourceMedia to Observer Capital

Announcement SourceMedia Introduces the Bond Buyer Data Workstation

SEC, MSRB: New Measures to Provide More Transparency Than Ever Before for Municipal Bond Investors

_The Bond Buyer_ is a trade publication for members of the municipal bond industry that began as a daily newspaper over 100 years ago and now provides sophisticated real-time market data via a subscription-based digital version. In September 2017, _The Bond Buyer_ announced a partnership with Municipal Bond Information Services (MBIS) to deliver real-time market data to subscribers through the Bond Buyer Data Workstation.﻿﻿﻿ This service is designed to enhance the website’s industry coverage and analysis by packaging it with sophisticated market data, similar to the service offered by Bloomberg. _The Bond Buyer_ is a trade publication for members of the municipal bond industry that began as a daily newspaper over 100 years ago and now provides sophisticated real-time market data via a subscription-based digital version. The Municipal Securities Rulemaking Board (MSRB) requires bond issuers to publish announcements of new bond issues or amendments to existing bonds.﻿﻿ _The Bond Buyer_'s Legal Notices section provides a directory of current offerings, as well as links to a notice of sale for each issuance. _The Bond Buyer_ is a trade publication for members of the municipal bond industry that offers real-time market data through a digital subscription.

The Bond Buyer

Build America Bonds were taxable municipal bonds that featured credits and federal subsidies for bondholders and state and local government issuers.

IRS Releases Guidance on ARRA Bond Provisions

Frequently Asked Questions on Build America Bonds and Recovery Zone Economic Development Bonds

Build America Bonds Fact Sheet, Q4 and Full Year 2010

Build America Bonds (BABs) were taxable municipal bonds that featured federal tax credits or subsidies for bondholders or state and local government bond issuers. Build America Bonds (BABs) were taxable municipal bonds that featured federal tax credits or subsidies for bondholders or state and local government bond issuers. The federal government introduced Build America Bonds (BABs) to ensure that local municipalities and counties were able to raise much-needed capital during the recession. The federal government introduced Build America Bonds (BABs) to ensure that local municipalities and counties were able to raise much-needed capital during the recession.

Build America Bonds (BABs)

A catastrophe call is a call provision in municipal bonds allowing for an early redemption if a catastrophic event occurs that causes damage to the project being financed.

A catastrophe call is a call provision in municipal bonds that allows for the early redemption of the instrument if a catastrophic event occurs and severely damages the project financed by the issue. In order to finance the road's construction, the municipality issues revenue bonds to its residents for fund generation, with the plan that the collected tolls will then pay the payments and interest on the bonds over a term of 30 years, as set in the bonds agreement. It is not advantageous for all municipal bonds to issue a catastrophe call provision, but catastrophe call provisions are more common in revenue bonds. It is a type of extraordinary redemption provision used to offset lost revenue from a municipal bond that was issued to fund the construction of a community facility that later suffers significant damage, limiting its ability to generate revenue to repay the bond. Since the construction cost was financed by a municipal bond issue (with a catastrophe call option) and the bridge's destruction does not allow it to generate the revenue expected to repay the debt, the bonds may be called at par immediately.

Catastrophe Call

A certificate of participation (COP) refers to financing secured by lease payments rather than debt interest.

A certificate of participation (COP) is a type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. A certificate of participation (COP) is a type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. A certificate of participation (COP) allows investors to participate in a pro-rata share of a lease-financing agreement. Investors that participate in the program are given a certificate that entitles each investor to a share, or participation, in the revenue generated from the lease-purchase of the property or equipment to which the COP is tied. A certificate of participation is a tax-exempt lease-financing agreement that is sold to investors as securities resembling bonds.

Certificate of Participation (COP)

A construction loan note (CLN) is a short-term obligation used for the funding of a construction project such as a housing development. Typically, the note issuer repays the note obligation by issuing a longer term bond.

A construction loan note (CLN) is a debt obligation used for the funding of construction projects such as housing developments. A construction loan note is a specific type of loan note, which appears commonly at the municipal level. Extended from one party to another, the construction loan note is itself a type of promissory note. A construction loan note (CLN) is a debt obligation used for the funding of construction projects such as housing developments. A large city may finance a housing development with a construction loan note, which provides money to builders to get the project underway.

Construction Loan Note (CLN)

Crossover refunding refers to the issuing of a new bond where the proceeds are placed in escrow to redeem a previously issued higher-interest bond.

Crossover refunding refers to the issuing of a new bond where the proceeds are placed in escrow to redeem a previously issued higher-interest bond. Commonly, crossover refunding is utilized by local governments when they issue new municipal bonds (called pre-refunding bonds) whose proceeds are placed in escrow and used to make debt service payments on the refunding bonds until the call date of the original, higher interest rate, municipal bonds. In effect, crossover refunding refers to a method of refunding in which the lien securing the outstanding bond crosses over to secure debt payments on the refunding bond, and the escrowed funds which were initially used to cover payments on the refunding bond crossover to pay off bondholders of the outstanding bond. Crossover refunding differs from a traditional refunding process in that the proceeds of the refunding bond issue are deposited in the escrow account and held there until the call date of the existing issue, at which point any securities in the escrow account are sold to redeem the outstanding bond. At that point, the refunding bond proceeds crossover and are used to pay the principal and the call premium and extinguish the original bond, which is commonly called the refunded bond.

Crossover Refunding

The de minimis tax rule defines a bond discount as a capital gain if it is less than a quarter-point per year between its purchase and maturity.

The de minimis tax rule sets the threshold at which a discount bond should be taxed as a capital gain rather than as ordinary income. In this example, If the price of the discount bond you purchased is below 98.75 per 100 of par value you will be subject to ordinary income tax under the de minimis tax rule.
So, if you purchased this bond for $95, ordinary income tax will apply when the bond is redeemed at par, since $95 is less than $98.75.
Another way to look at it is the market discount of 100 – 95 = 5 is higher than the de minimis amount of 1.25. To determine whether a municipal bond is subject to the capital gains tax or ordinary income tax using the de minimis tax rule, multiply the face value by 0.25%, and multiply the result by the number of full years between the discounted bond's purchase date and the maturity date. Under the de minimis tax rule, if a municipal bond is purchased for a minimal discount, it is subject to capital gains tax rather than the (usually higher) ordinary income tax rate. According to the Internal Revenue Service (IRS), a minimal discount–defined as an amount less than a quarter of a percent of the par value multiplied by the number of complete years between the purchase date of the bond and its maturity date–is too small to be considered a market discount for income tax purposes.

De Minimis Tax Rule

Double exempt refers to the tax status of a security, such as a municipal bond, that is not subject to both federal and state income taxation.

Double exempt refers to the tax status of a security, such as a municipal bond, where the coupon payments are not subject to both federal and state income taxation. Municipal bonds are usually exempt from federal income taxes and, in some states, they are also exempt from state income taxes, which makes them double exempt. Specifically, the term double exempt refers to a type of tax benefit attached to certain bonds which allows the interest earned from the bonds to be free from being taxed as gross income at both the federal and state level. Double exempt bond income can be an AMT preference item in some cases which, from a tax perspective, often makes bonds issued in one's home state more attractive than those issued out-of-state. Specifically, the term double exempt refers to the tax benefit which allows the interest earned from bonds to be free from being taxed as gross income at both the federal and state level.

Double Exempt

A double-barreled bond is a municipal bond in which the interest and principal payments are pledged by two distinct entities—revenue from a defined project and the issuer and its taxing power.

A double-barreled bond is a municipal bond in which the interest and principal payments are pledged by two distinct entities—the revenue from a defined project and the issuer and its taxing power. A double-barreled bond is a municipal bond in which the interest and principal payments are pledged by two distinct entities—the revenue from a defined project and the issuer and its taxing power. When interest and principal payments are made from a combination of revenue and general obligation, the bond is referred to as a double-barreled bond. Typically, when a revenue bond is issued to fund a project, the municipality doesn't have to pay investors if the revenue from the project doesn't cover the bond payments or obligations. Interest payments and principal repayments may be made from the issuing entity (general obligation bond) or from a single revenue source (revenue bond).

Double Barreled

Electronic Municipal Market Access (EMMA) system seeks to provide the public with information about municipal bonds, bond prices and market trends.

The Electronic Municipal Market Access (EMMA) service is a website created to provide information about municipal bonds, bond prices, and market trends to the public. The Electronic Municipal Market Access (EMMA) service is a website created to provide information about municipal bonds, bond prices, and market trends to the public. Electronic Municipal Market Access (EMMA) service is a website created to provide information about municipal bonds, bond prices, and market trends to the public. Individual and professional investors can use EMMA to find information about the issuers of municipal bonds, past bond trading history, prices, and disclosure documents. The EMMA website includes tools to search for municipal bonds, calendars of relevant economic announcements and upcoming bond offerings.

Electronic Municipal Market Access (EMMA)

Escrowed to maturity refers to the placement of funds from a new bond issue into an escrow account to pay off an older bond's payments until it matures.

Escrowed to maturity refers to the placement of funds from a new bond issue into an escrow account to pay off an older bond's periodic coupon payments and, ultimately, the principal on its maturity date. Investors typically receive a better after-tax yield from escrowed to maturity bonds than they would on a bond with similar duration and risk.
Escrowed to maturity describes the process of an issuer investing and holding the proceeds from new bond sales in an escrow account to cover the existing obligations to the holders of a previously issued bond.
Escrowed to maturity municipal bonds are a form of pre-funded municipal bonds, which are backed by Treasury securities held in an escrow account. Escrowed to maturity municipal bonds are a form of pre-funded municipal bonds, which are backed by Treasury securities held in an escrow account. Escrowed to maturity refers to the placement of funds from a new bond issue into an escrow account to pay off an older bond's periodic coupon payments and, ultimately, the principal on its maturity date. Pre-funded municipal bonds, which include escrowed to maturity bonds, are securities that a bond issuer has called, or bought back, from the bondholder before it has matured.

Escrowed to Maturity

Ex-Legal is a municipal bond that is delivered without a bond law firm's legal opinion printed on it.

Ex-Legal is a municipal bond that is delivered without a bond law firm's legal opinion printed on it. Ex-legal bonds are more prone to legal risk than bonds with legal opinions. Bond law firms are engaged to provide an objective legal opinion with respect to the validity of bonds and other subjects, particularly the tax treatment of interest on municipal bonds. The bond opinion usually confirms:
that the bonds have been duly authorized and executed by and are valid and binding obligations of the issuer
the source of payment or security for the bonds
whether and to what extent interest on the bonds is exempt from federal income taxes and from other taxes, if any, imposed by the state of issue. Most municipal bonds have the legal opinion of a bond law firm, or bond attorney, printed directly on them.

Ex-Legal

Gross revenue pledge is a stipulation in a municipal bond indenture that compels the issuer to use the bond's revenue to service the debt first.

Moody's Assigns Aa3 to University of Connecticut's Series 2018A Student Fee Bonds

Gross revenue pledge, also known as "pledged revenue", is a stipulation in some municipal bond indentures that compels the issuer to use the bond's revenue to service the debt first. Gross revenue pledge makes the debt issue safer for bondholders which, usually, results in the bond issue being offered at a lower interest rate. Generally, the added safety created by the gross revenue pledge is a cause for the bond issue to be offered at a lower interest rate, which saves money on interest expense for the issuer. Like most restrictive provisions in a bond indenture, a gross revenue pledge makes the debt issue safer for bondholders. Gross revenue pledge, or lack thereof, is a factor in the rating of a debt obligation by a credit agency and in the pricing of the issue.

Gross Revenue Pledge

A hospital revenue bond is a type of municipal bond that finances the construction of new facilities or upgrades for existing hospitals.

A hospital revenue bond is a type of municipal bond that finances the construction of new facilities or upgrades for existing hospitals and is secured by the revenues that hospitals receive in the course of their normal operations. A hospital revenue bond is a type of municipal bond that finances the construction of new facilities or upgrades for existing hospitals and is secured by the revenue that hospitals receive in the course of their normal operations. Hospital revenue bonds typically command higher yields due to their default risk being higher given their inability to raise revenue through taxes like other municipal bonds. Generally, bondholders receive payment only after paying the expenses of running the hospital is complete which can create risk for bondholders if the hospital is not as profitable as anticipated.
Hospital revenue bonds are considered to be among the riskiest types of municipal bonds. A hospital revenue bond is a type of municipal bond that finances the construction of new facilities or upgrades for existing hospitals and is secured by the revenues that hospitals receive in the course of their normal operations.

Hospital Revenue Bond

A housing authority bond is issued by a state or local government to finance the construction or the rehabilitation of affordable housing, or to help low-income individuals buy a home.

California Proposition 1, Housing Programs and Veterans' Loans Bond (2018)

Housing authority bonds, or housing bonds, are issued by a state or local government agency to help finance the construction or rehabilitation of affordable rental housing. Housing authority bonds, or housing bonds, are issued by a state or local government agency to help finance the construction or rehabilitation of affordable rental housing. Housing authority bonds, or housing bonds, are issued by a state or local government agency to help finance the construction or rehabilitation of affordable rental housing. Federal low-income housing tax credits are another source of capital that may be used instead of or in addition to housing bonds in order to finance affordable housing projects. As private activity bonds (PABs), housing bonds can be issued on behalf of qualified profit and non-profit developers to finance low-income multifamily and senior housing projects.

Housing Authority Bonds

Housing bonds are debt securities issued by state or local governments to raise money for affordable housing development.

26 USC 103: Interest on State and Local Bonds

Housing bonds are debt securities, a variation of municipal revenue bonds, issued by state or local governments to raise money for affordable housing development projects. Housing bonds are debt securities, a variation of municipal revenue bonds, issued by state or local governments to raise money for affordable housing development projects. Housing bonds are debt securities, a variation of municipal revenue bonds, issued by state or local governments to raise money for affordable housing development projects. Federal low-income housing tax credits are another source of capital that may be used instead of, or in addition to, housing bonds in order to finance affordable housing projects. As private activity bonds (PABs), housing bonds can be issued on behalf of qualified profit and nonprofit developers to finance low-income multifamily and senior housing projects.

Housing Bonds

Municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or tools.

Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools. Other IRB provisions include:
the maximum amount of bonds that may be issued or outstanding is $10 million
at least 95% of the bond proceeds must be spent on qualifying costs
not more than 2% of the proceeds may be used for costs of issuance
total IRBs outstanding at the company may not exceed $40 million
the weighted average maturity of the bonds cannot exceed 120% of the average economic life of the facilities to be financed
bond proceeds cannot be used to acquire used equipment, except as part of the acquisition of an entire facility
no more than 25% of the proceeds can be used to acquire land
As these provisions suggest, IRBs tend to be small-issue manufacturing bonds.
Many IDBs are sold as variable rate demand obligation bonds (VRDO) secured by a bank letter of credit with a long-term credit rating of at least A3 from Moody's Investors Service, or an A- from Standard & Poor's or Fitch Ratings.
As with other munis, the interest IRBs pay is exempt from both federal and state income taxes. Industrial revenue bonds (IRBs) are a type of municipal bond, issued by a state or local government on behalf of a private company for a specific project. One type of revenue bond is the private activity bond (PAB), which is issued by the municipality on behalf of private organizations (either for-profit or non-profit) to finance particular projects. Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools.

Industrial Revenue Bonds—IRBs Definiton

MBIA Insurance Corporation provides insurance to the issuers of municipal bonds.

MBIA Insurance Corporation is a company that provided insurance to municipalities that issue bonds. Bond issuers found they could lower the total cost of issuing debt by purchasing MBIA insurance, as the higher rating the bonds garner, the lower the issuer could adjust the coupon rate when presenting to investors.
MBIA insurance is purchased the same way other types of insurance are, with the policyholder selecting specific amounts of coverage and an underwriter calculating the risks to the insurer of providing this coverage in order to determine the price of the insurance. The presence of MBIA insurance on municipal bonds previously ensured an AAA rating or its equivalent from the major rating agencies, which made the bonds much more marketable to investors.
MBIA Insurance Corporation provided insurance to back municipal bonds, also known as munis. MBIA insurance was used to back municipal bonds and structured finance products, and as an avenue to credit enhancement for municipal bond issuers, as MBIA's insurance promised to pay interest and principal on any bonds that suffer an issuer default. Purchased by the municipal bond issuer, the presence of MBIA insurance on a municipal bond typically ensures an AAA rating or its equivalent, making the bonds much more marketable to investors.

MBIA Insurance Corporation

Municipal inflation-linked securities are investment vehicles where the variable coupon payments are indexed to the current inflation rate.

Municipal inflation-linked securities are investment vehicles, issued by local municipalities, where the variable coupon payments is indexed to the inflation rate, as measured by the Consumer Price Index (CPI). During periods of inflation, if the inflation rate was greater than the coupon rate, it would be possible to lose money by investing in a municipal bond, because the interest earned on the bond would be less than the value the money was losing through inflation. The big difference between the two is that a municipal bond pays one coupon rate for the duration of the bond until maturity, while a municipal inflation-linked security adjusts the assumed principal to keep track with inflation. Municipal inflation-linked securities are investment vehicles, issued by local municipalities, where the variable coupon payments is indexed to the inflation rate, as measured by the Consumer Price Index (CPI). Municipal inflation-linked securities are investment vehicles, issued by local municipalities, where the variable coupon payment is indexed to the inflation rate, as measured by the CPI.

Municipal Inflation-Linked Securities

Municipals-over-bonds spread (MOB) is the difference in yields between a municipal bond and a Treasury bond with the same time to maturity. 

Publication 550: Investment Income and Expenses

Municipals-over-bonds spread (MOB) refers to the difference between the yields from municipal, or municipal bonds, and Treasury bonds which have the same time to maturity. Municipals-over-bonds spread (MOB) expresses the relationship between the yields from an index of municipal bonds and those from a Treasury bond (T-bond).
Municipal refers to the municipal bond contract. Municipals-over-bonds spread (MOB) refers to the difference between the yields from municipal, or municipal bonds, and Treasury bonds which have the same time to maturity. The municipals index is an index of municipal bonds which are changed regularly to incorporate new municipal bonds and remove older ones. The spread increases when the difference between the municipal bonds contract and the Treasury bond contract widens.

Municipals-Over-Bonds Spread (MOB)

Moral obligation bond is a tax exempt revenue bond issued by a municipality that carries a moral, though not legal, commitment to avoid defaulting.

Innovations in Education: Making Charter School Facilities More Affordable: State-driven Policy Approaches

Moral obligation bond is a tax exempt revenue bond issued by a municipality, or similar government body, that carries with it a moral, though not legal, commitment to avoid defaulting on payments, even it means appropriating funds from elsewhere. Moral obligation bond is a tax exempt revenue bond issued by a municipality, or similar government body, that carries with it a moral, though not legal, commitment to avoid defaulting on payments, even it means appropriating funds from elsewhere. Moral obligation bond is a tax exempt revenue bond issued by a municipality, or similar government body, that carries with it a moral, though not legal, commitment to avoid defaulting on payments, even it means appropriating funds from elsewhere. A moral obligation bond not only gives investors the tax exemption benefits inherent in a municipal bond, but also provides an additional moral pledge of protecting lenders against default. In addition to the higher yield earned, interest income from moral obligation bonds is exempt from federal taxes and most state taxes if the investor lives in the state or municipality issuing the debt.

Moral Obligation Bond

A mortgage-backed revenue bond is a debt security, usually issued by a municipality, that is used to fund low-rate mortgages.

A mortgage-backed revenue bond is a debt security, usually issued by a municipality, that is used to fund low-rate mortgages. However, mortgage-backed revenue bonds are issued by municipalities, while mortgage-backed securities are issued by private entities or a government-sponsored enterprise (GSE). In the case of mortgage-backed revenue bonds, also known as housing bonds, the coupon payments that investors receive are typically exempt from taxes.﻿﻿ Because their repayments get tied to a specific income stream, revenue bonds carry greater risk than general obligation bonds, which municipalities repay through an array of sources, including tax revenue. A mortgage-backed revenue bond is a debt security, usually issued by a municipality, that is used to fund low-rate mortgages.

Mortgage-Backed Revenue Bond

The Municipal Securities Rulemaking Board (MSRB) is a regulating body that creates policies ensuring fair practices in the municipal trade industry. 

The Municipal Securities Rulemaking Board, (MSRB), is a regulating body which creates rules and policies for investment firms and banks in the issuing and sale of municipal bonds, notes, and other municipal securities. The Municipal Securities Rulemaking Board, (MSRB), is a regulating body which creates rules and policies for investment firms and banks in the issuing and sale of municipal bonds, notes, and other municipal securities. 3.  Short-term municipal bonds such as Tax Anticipation Notes (TANs), Revenue Anticipation Notes (RANs), Bond Anticipation Notes (BANs)
4.  Exotic or Unique bonds are usually some variation on the earlier categories and include Certificates of Participation and Private Activity Bonds. The Municipal Securities Rulemaking Board, (MSRB) is the primary regulator of municipal securities issued in the United States. In the late 2000s, the MSRB launched the Electronic Municipal Market Access website, which provides free public access to information related to municipal bond trading, along with important disclosure documents.

Municipal Securities Rulemaking Board (MSRB)

Municipal bond arbitrage refers to an investor leveraging the tax-exempt status of municipal bonds to hedge their portfolio's duration risk.

Municipal bond arbitrage refers to the strategy that an investor deploys where they leverage the tax-exempt status of municipal bonds to hedge their portfolio's duration risk. Since interest payments from municipal bonds are exempt from federal income tax, an arbitrageur can receive after-tax income from the municipal bond portfolio which is higher than the interest paid on the interest rate swap. This strategy can be an especially attractive option for some investors in high-income tax brackets. Municipal bond arbitrage involves hedging a portfolio of tax-exempt municipal bonds by simultaneously shorting equivalent taxable corporate bonds of the same maturity. Municipal bond arbitrage involves hedging a portfolio of tax-exempt municipal bonds by simultaneously shorting equivalent taxable corporate bonds of the same maturity. Municipal bond arbitrage refers to the strategy that an investor deploys where they leverage the tax-exempt status of municipal bonds to hedge their portfolio's duration risk.

Municipal Bond Arbitrage

A mutual investment certificate, issued by a local authority, assesses tax on a community to fund a public works project that will benefit them.

A mutual investment certificate, issued by a local authority, assesses tax on a community in order to fund a public works project that will benefit that community. A mutual investment certificate, issued by a local authority, assesses tax on a community in order to fund a public works project that will benefit that community. A mutual investment certificate, issued by a local authority, assesses tax on a community in order to fund a public works project that will benefit that community. A mutual investment certificate is a financial instrument that offers a resource for community leaders, boards, or other local government entities to finance worthwhile projects with potential to make a positive impact on the area. By providing new resources or facilities to the residents of the community, the project aims to have a positive impact not only on the quality of life but also on the economic landscape of that community.

Mutual Investment Certificate

A municipal investment trust is a type of unit investment trust (UIT) that invests in a diversified pool of municipal securities.

Municipal investment trusts are a type of unit investment trust (UIT) that invests solely in municipal securities. Securities in a UIT aren't bought or sold unless there's a change in the underlying investment, such as a corporate merger or bankruptcy. Investments in a mutual investment trust are held until maturity, and some even have a maturity date.
Typically, the management fees of a municipal investment trust are lower than the management fees of a mutual fund, partly because there is not as much active management involved. As with all UITs, municipal investment trusts are sold by investment advisors and an owner can redeem the units to the fund or trust, rather than placing a trade in the secondary market. Municipal investment trusts are a type of unit investment trust (UIT) that invests solely in municipal securities. Municipal investment trusts are a type of unit investment trust (UIT) that invests solely in municipal securities.

Municipal Investment Trust

A municipal note is debt issued by state and local governments to finance capital expenditures, such as construction projects.

A municipal note is debt issued by state and local governments to finance capital expenditures, such as construction projects. The three types of municipal notes include bond anticipation notes, tax anticipation notes, and revenue anticipation notes. Revenue anticipation notes (RANs) are municipal notes whose interest and principal payments are secured by the anticipated non-tax revenue of a project. Municipal notes usually pay lower coupons than corporate notes with similar maturities, but because the yield is tax-free, the after-tax basis may be higher for a municipal bond. Municipal notes make one payment upon maturity that includes both interest and principal payment, and they are exempt from federal income tax and sometimes state and local income tax.

Municipal Note

A municipal bond is a debt security issued by a state, municipality or county to finance its capital expenditures. 

A municipal bond is a debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools. As a fixed-income security, the market price of a municipal bond fluctuates with changes in interest rates: When interest rates rise, bond prices decline; when interest rates decline, bond prices rise. In addition, a bond with a longer maturity is more susceptible to interest rate changes than a bond with a shorter maturity, causing even greater changes in the municipal bond investor’s income. An issuer typically calls a bond when interest rates drop and reissues municipal bonds at a lower interest rate. When a bond is called, investors lose income from interest payments and face reinvesting in a bond with a lower return.

Municipal Bond

A municipal bond fund is a fund that invests in municipal bonds—state or local government-issued short-term debt instruments used to fund capital projects.

A municipal bond fund is a fund that invests in municipal bonds. The best municipal bond ETFs for the rest of 2020 include the IQ MacKay Shields Municipal Insured ETF, which invests in investment-grade municipal bonds that are covered by an insurance policy guaranteeing principal and interest payments; the Invesco Taxable Municipal Bond ETF, which invests in the (taxable) U.S. dollar-denominated Build America Bonds issued by U.S. states and territories under the 2009 Recovery and Reinvestment Act; and the IQ MacKay Shields Municipal Intermediate ETF, which is primarily invested in investment-grade municipal bonds through an actively managed strategy. Municipal bonds and bond funds are usually exempt from federal taxes, and if they are issued within the state of the purchaser, are also exempt from state taxes. Municipal bond funds invest in municipal bonds, debt instruments issued by state and local governments to help fund capital projects. A municipal bond fund is exempt from state tax if it is comprised of bonds issued primarily in the state of the investor’s residence.

Municipal Bond Fund

Munifacts was a newswire service for municipal bonds on new issues in the primary and secondary market that is now part of Thomson Reuters.

MMD SEC Filing: IFR The Municipal Market Monitor TM3

Munifacts was a private newswire communication service for municipal bonds which provided information on new municipal bond issues in the primary market and secondary market. The MMD AAA curve represents the MMD analyst team’s opinion of AAA valuation, based on an institutional block size of $2 million-plus market activity in both the primary and secondary municipal bond market. The Moody's ratings are one through four, with a one (MIG 1) representing the highest quality and a four (MIG 4) representing the lowest quality.
A proprietary yield curve Municipal Market Data (MMD) AAA Curve provides the offer-side of AAA-rated state general obligation bonds (GO). Munifacts was a private newswire communication service for municipal bonds which provided information on new municipal bond issues in the primary market and secondary market. The main features of The Municipal Market Monitor are:
Municipal market data
Primary & secondary markets
Muni/data analysis
Variable Rate Demand Notice network
Tables on the dashboard

Munifacts

Net debt to asset valuation measures a municipality’s net debt compared to the value of the real property being purchased in a municipal bond issue.

Some of the more commonly used ratios in addition to net-overall debt to asset valuation include:
The net-overall debt to estimated full valuation compares the net value of a municipal bond issue to the expected market value of the real estate secured by the debt.
A You can figure out net debt to assessed valuation for a municipal bond issue using the following formula: short-term debt + long-term debt - cash and cash equivalents ÷ total estimated market value of property or assets. The tax-supported debt to personal income would be comparing a state’s level of debt to the total personal income of its residents, which measures the state’s ability to repay its obligations because it indicates its ability to generate revenue.
Let's use a hypothetical example to show how net debt to assessed valuation works. The term net debt to asset valuation refers to the total amount of a municipality's debt compared to the value of total assets that are assessed or purchased for a municipal bond issue.

Net Debt to Assessed Valuation

Net revenue pledge requires the issuer of a municipal bond to use generated revenues to service debt costs after satisfying operational expenses.

A net revenue pledge requires the issuer of a municipal bond to use generated revenues to service debt costs (interest and principal payments) immediately after satisfying maintenance and operational expenses. A net revenue pledge requires the issuer of a municipal bond to use generated revenues to service debt costs (interest and principal payments) immediately after satisfying maintenance and operational expenses. A net revenue pledge requires the issuer of a municipal bond to use generated revenues to service debt costs (interest and principal payments) immediately after satisfying maintenance and operational expenses. A net revenue pledge is a way of governing the repayment priority of revenue bonds, and they have an impact on the flow of funds for the bond issuer. Pledged revenue—the money obligated for the payment of debt service and for the making of other deposits required by the bond contract—and the flow of funds are both of critical importance when analyzing revenue bonds.

Net Revenue Pledge

The placement ratio calculates the percentage of new municipal bond offerings, greater than 1 million USD, that had been bought in the prior week.

The placement ratio, also known as the acceptance ratio, calculates the percentage of new municipal bond offerings greater than $1 million purchased in the prior week. Placement Ratio \= Municipal Bonds Sold Municipal Bonds Available \\begin{aligned} &\\text{Placement Ratio} = \\frac { \\text{Municipal Bonds Sold}}{ \\text{Municipal Bonds Available} } \\\\ \\end{aligned} ​Placement Ratio\=Municipal Bonds AvailableMunicipal Bonds Sold​​
The higher the placement ratio, the better the overall strength of the municipal bond market. The data for bonds issued and sold during the week is compiled at the close of business on Friday and reported on Monday by _The Bond Buyer_.
The placement ratio is an indicator of the overall situation of the municipal bond market. The placement ratio, also known as the acceptance ratio, calculates the percentage of new municipal bond offerings greater than $1 million purchased in the prior week. The placement ratio, also known as the acceptance ratio, calculates the percentage of new municipal bond offerings greater than $1 million bought in the prior week.

Placement Ratio

A municipal bond that benefits a private entity is defined as a private-purpose bond. That means the investor may have to pay taxes on the interest.

Private Business Use - Management Contracts

Tax Exempt and Government Agencies: Tax-Exempt Private Activity Bonds

Investor Bulletin, Municipal Bonds: Understanding Credit Risk

Report on the Municipal Securities Market

Module D: Governmental and Private Activity Bonds

A private-purpose bond is a municipal bond that is issued to finance a project that benefits a non-governmental entity. While public-purpose municipal bonds are tax-free, private-purpose bonds are not, making the private bonds less appealing to investors than other munis. A private-purpose bond is a municipal bond that uses most of its funding to benefit private, non-public activities or private parties. A private-purpose bond is a municipal bond that is issued to finance a project that benefits a non-governmental entity. By law, it must contain an opinion by a qualified tax attorney on whether the bonds are public-purpose or private-purpose as defined by the Tax Reform Act of 1986.

Private-Purpose Bond

Pre-funded bond is a government issued, usually a municipal, bond where the funds to pay it off at the call date are set aside in an escrow account.

Pre-funded bond is a government issued, usually municipal, bond where the funds to pay it off at the call date are set aside in an escrow account. Pre-funded bonds that are defeased will have a provision in the escrow agreement requiring issuer on the pre-funded bonds to make up any shortfall in the escrow account, but this is unlikely. The pre-funded bond issuer is not required to generate cash flow to fulfill its payment obligations on the bond as the payment is made through the escrow account. Pre-funded bonds are bonds which have their interest and principal obligations guaranteed by risk-free securities in an escrow account. Pre-funded bond is a government issued, usually municipal, bond where the funds to pay it off at the call date are set aside in an escrow account.

Pre-Funded Bond

Private activity bonds are tax-exempt bonds issued by local or state governments to provide special financing benefits for qualified projects.

Module B Introduction to Federal Taxation of Municipal Bonds

Lesson 8 Section 149 Rules Applicable to All Tax-Exempt Bonds

Tax Exempt & Government Entities Tax-Exempt Governmental Bonds

Private activity bonds (PAB) are tax-exempt bonds issued by or on behalf of a local or state government for the purpose of providing special financing benefits for qualified projects. According to Section 141 of the IRC, a municipal bond will be deemed a private activity bond if more than 10% of the proceeds from the bond issue are used for any private business, and the principal and interest payment on more than 10% of the sale proceeds of the issue is secured by a private business property. States and cities, through private activity bonds, are able to borrow on behalf of private companies and nonprofits, lowering borrowing costs for entities that might otherwise turn to corporate bonds or bank loans. Private activity bonds are municipal bonds that are used to attract private investment for projects that have some public benefit; however, there are strict rules as to which projects qualify. Private activity bonds (PAB) are tax-exempt bonds issued by or on behalf of a local or state government for the purpose of providing special financing benefits for qualified projects.

Private Activity Bond (PAB)

Project Completion Restriction is a clause that requires the issuing party to sell debt securities to finance the full completion of a project.

A project completion restriction is a clause often found in municipal bond indentures that requires the issuing party to sell additional debt securities (typically revenue bonds) to finance the full completion of a project. A project completion restriction is a clause often found in municipal bond indentures that requires the issuing party to sell additional debt securities (typically revenue bonds) to finance the full completion of a project. Should a project encounter obstacles that prevent it from reaching the revenue-generating phase—for example, due to construction costs that are higher than anticipated—a project completion restriction would require the issuer to take on additional debt to see the project through. A project completion restriction is a clause that requires the issuing party to sell debt securities to finance the full completion of a project. Because the indenture in the original bond sale contained a project completion restriction, the town is required to come up with the additional $5 million to complete the toll road project.

Project Completion Restriction

A public purpose bond is used by municipalities to finance public works as opposed to private purpose bonds.

A public purpose bond is a type of debt security that municipalities use to finance public works facilities and improvements. A public purpose bond is a municipal bond issued by a state, municipality, or county to fund projects that benefit the public, such as schools, parks, or public roads. Public purpose bonds are exempt from federal income taxes and were first defined by the Tax Reform Act of 1986 which requires the categorization as either public purpose or private purpose bonds. A public purpose bond is a kind of general obligation bond (GO); as such, municipalities are not required to provide assets for collateral; instead, they look to repay the debt through taxation and any revenue from the project. This kind of bond contrasts with a private purpose bond, a type of bond that provides financing for a project for which at least 10% of the benefit goes to the private sector.

Public Purpose Bond

Revenue Anticipation Notes (RAN) are municipal bonds where the government repays lenders with the revenue it generates from the financed project.

Tax-Exempt Bonds: A Description of State and Local Government Debt

Revenue Anticipation Notes (RANs) are a type of municipal bond where the government borrows money to finance a project and then repays lenders with revenue generated by that same project. Revenue Anticipation Notes (RANs) are a type of municipal bond where the government borrows money to finance a project and then repays lenders with revenue generated by that same project. Revenue Anticipation Notes (RANs) are a form of note or short-term loan that a government usually repays from a named revenue source within a period of one year. Revenue Anticipation Notes (RANs) are a form of short-term debt a government issuer usually repays from a named revenue source within a period of one year. RANs are one of several governmental note categories that agencies issue to finance short-term projects, including Tax Anticipation Notes (TANs) and Bond Anticipation Notes (BANs).

Revenue Anticipation Note (RAN)

A residual interest bond (RIB) is a type of inverse, floating-rate bond created by dividing the income from a municipal bond into two portions. 

Residual interest bonds (RIBs) are securities created when income from a municipal bond is divided into two segments. A residual interest bond is a type of inverse floating-rate bond created by dividing the income from a municipal bond into two portions: a residual interest floating-rate bond and a primary direct floating-rate bond. A residual interest bond (RIB), also known as an inverse floater or inverse floating-rate bond, is a municipal bond that has been split into two segments. A residual interest bond can be either a general obligation bond or a revenue bond, as this does not matter to the investor except for the different risk profiles of the two, which they would choose depending on their risk tolerance. The first segment of a RIB is a residual inverse floating-rate bond and the second segment is a primary direct floating-rate bond.

Residual Interest Bond (RIB)

A revenue bond is a municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium. 

New York's MTA eyes nascent 'green bond' market with $500 million bond

A revenue bond is a category of municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium. Broadly, several types of revenue bonds are commonly issued by state and local governments:
An airport revenue bond is a type of municipal bond issued by a municipality or airport authority that uses the revenues of the airport facility to back the bond. Revenue bonds, which are also called municipal revenue bonds, differ from general obligation bonds (GO bonds) that can be repaid through a variety of tax sources. A revenue bond is a category of municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium. An agency that is run solely on tax dollars, such as a public school, cannot issue revenue bonds, since these entities would be unable to pay off the bond using revenues from the specific project.

Revenue Bond

A form that a bank, or a specific division or department of a bank, must file to apply for registration as a municipal securities dealer (MSD).

Form MSDW: Notice of Withdrawal from Registration as a Municipal Securities Dealer

To act as a municipal securities dealer (MSD) a banking or financial institution or entity must file SEC Form MSD. A hypothetical example of the typical actions of a municipal securities dealer includes giving a quote to another dealer interested in purchasing the New York State GO bonds of “6.12% firm for 45 minutes with a 5-minute recall.”
The municipal dealer is willing to sell the bonds to the purchasing dealer at a yield to maturity of 6.12% and will be ready to do so for 45 minutes. A bank or other financial institution, or a specific division or department within the organization must file Form MSD with the Securities and Exchange Commission (SEC) to act in the capacity of a municipal securities dealer. To act as a municipal securities dealer (MSD) a banking or financial institution or entity must file SEC Form MSD. Also, Form MSD requires a firm to reveal if any staff person working with its municipal securities division has involvement in disciplinary proceedings related to the sale of securities.

SEC Form MSD

The Series 52 qualifies a financial professional to transact in municipal securities. It is developed and offered by the Municipal Securities Rulemaking Board.

https://www.finra.org/registration-exams-ce/qualification-exams/series52

The Series 52 is a professional license and certification that qualifies a financial professional to transact municipal securities. The following material is covered on the exam:
Types of municipal securities
Characteristics of municipal securities
The market for municipal securities
Analyzing municipal credit As a municipal securities representative, professionals can transact and underwrite municipal securities, provide professional financial advice or consultation in regard to municipals issuance, and generally provide communication to pubic investors on municipal securities. Municipal securities representatives that have passed the Series 52 exam and obtained their Municipal Securities Representative Certification can transact or underwrite municipal securities for a sponsoring organization. Mathematical calculations and methods
Characteristics of various U.S. government, federal agency and other financial instruments
The market for U.S. government, federal agency and other financial instruments — impact and relationship to other fixed income markets
Credit features
Monetary policy
Fiscal policy
Factors affecting interest rates
Regulation of municipal market professionals
Securities Investor Protection Act of 1970
Contents of a typical notice of bond sale
Outline of a typical official statement

Series 52

Special assessment bonds are general obligation bonds where the interest owed is paid by taxes levied on the beneficiaries of the funded project.

Special assessment bonds are general obligation bonds, commonly issued to fund development projects, where the interest owed is paid by taxes levied solely on the beneficiaries of that project. Like most municipal bonds, the interest on special assessment bonds is exempt from federal taxes, and most state and local taxes if the investor lives in the state or municipality issuing the debt.﻿﻿ The higher an investor's marginal tax rate, the more valuable the bond's tax exemption is and, thus, more desirable. Since the interest on special assessment bonds is paid by taxes of the community that benefit from the development, it is not unusual for the members of the benefiting community to invest in the issue, thereby, offsetting the additional taxes that are levied in order to finance the bond. Special assessment bonds are general obligation bonds, commonly issued to fund development projects, where the interest owed is paid by taxes levied solely on the beneficiaries of that project. Special assessment bonds are general obligation bonds, commonly issued to fund development projects, where the interest owed is paid by taxes levied solely on the beneficiaries of that project.

Special Assessment Bond

A special tax bond is a type of municipal bond that is repaid with revenues derived from a tax that is levied specifically for that purpose.

A special tax bond is a type of municipal bond that is typically repaid with revenue from a tax levied against an existing activity or asset specifically for that purpose. A type of special tax bond is the special assessment bond, which is a bond which has its payment obligations guaranteed from revenue received from the increment of taxes on residents who directly benefit from the project. A special tax bond is a type of municipal bond that is typically repaid with revenue from a tax levied against an existing activity or asset specifically for that purpose. A special tax bond is a type of municipal bond typically repaid with tax revenue levied against an existing activity or asset. A special tax bond is a hybrid security that combines features of a general obligation bond and a revenue bond.

Municipal Bonds

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