Pricing Municipal Bonds Through a Competitive Sales Process

Read the learning objectives and topics covered in this MuniEdPro® course. Log into MuniEdPro®.

Target Audience

  • Broker-dealers 
  • Municipal securities issuers
  • Municipal advisors

Learning Objectives

At the end of this course learners will be able to:

  • Identify the components of the competitive sales process to price municipal bonds in the primary market; and
  • Associate the MSRB rules applicable to competitive sale in the primary market.

Course Outline

1. MSRB Rules applicable to the pricing municipal bonds through a competitive sales process
a. MSRB Rule G-8: Books and Records to be Made by Brokers, Dealers, and Municipal Securities Dealers
b. MSRB Rule G-11: Primary Offering Practices
c. MSRB Rule G-14: Report of Sales or Purchases
d. MSRB Rule G-17: Conduct of Municipal Securities and Municipal Advisory Activities
e. MSRB Rule G-21: Advertising
f. MSRB Rule G-30: Prices and Commissions
g. MSRB Rule G-32: Disclosure in Connection with Primary Offerings
h. MSRB Rule G-33: Calculations
i. MSRB Rule G-34: CUSIP Numbers, New Issue, and Market Information Requirements
j. MSRB Rule G-42: Duties of Non-Solicitor Municipal Advisors

2. Beginning the competitive pricing process
a. Transaction Timeline
b. Notice of Sale
c. Preliminary Official Statement
d. Bond Documents

3. Production of Notice of Sale/POS Documents
a. Credit Ratings
b. Preliminary Official Statement (POS)

4. Deal Announcement/Notice of Sale
a. Ordering CUSIP Numbers
i. Applicable to municipal advisors
ii. Applicable to underwriters

5. Pre-Bid Period
a. Underwriters’ decision processes
b. Competitive bid submission

6. Awarding the Bond
a. Bid evaluation and verification
b. Final Award
c. Resizing

7. Winning Underwriter’s Activities
a. Public Re-Offering
b. New issue information dissemination
c. When-Issued Trade execution
d. Official Statement preparation and delivery

8. Closing
a. Bond Closing Documents
b. Transaction Closing
c. Post-Sale Reports

9. Assessment