The Fundamentals of Municipal Bonds
The Fundamentals of Municipal Bonds is a definitive edition of the classic text on the municipal securities market. With a comprehensive coverage on the market’s development, it also covers detailed explanations and a variety of relevant examples to illuminate crucial areas. This book also contains a substantial glossary of municipal bond technology, a bibliography relevant to online courses, numerous tables, charts, and mathematical formulas that are essential to the municipal securities industry. The Fundamentals of Municipal Bonds is a reference work that consists of the basics of municipal securities, including the issuers, the primary market, the secondary market, credit analysis, interest rates, and regulatory and disclosure requirements.
TABLE OF CONTENTS
CHAPTER 1: Overview of the Municipal Bond Market
Introduction
The Issuers
Municipal Bond Dealers
The Lawyers
Financial Advisors, Specialists, and Other Consultants
The Rating Agencies
Bond Brokers
The Credit Enhancers
The Trustees and Paying Agents
The Investors
Information and Technology
The Regulators
Other Participants
CHAPTER 2 The Basics of Municipal Securities
Description of Municipal Securities
Yield and Price
Types of Yields
Tax Exemption of Municipal Bonds
Types of Municipal Bonds
Short-Term Securities
Other Characteristics of Municipal Bonds
CHAPTER 3 The Issuers
Introduction
Authorities and Special Districts
The Theory of Municipal Debt: Pay-As-You-Use versus Pay-As-You-Go
The Uses of Municipal Debt
The Security for Municipal Bonds
The Financing Process
The Financing Documents
Structuring the Debt
State and Local Government Accounting
CHAPTER 4 The Primary Market
Issuance Trends in the Primary Market
The Basics of Underwriting
Negotiated Underwriting
Competitive Underwriting
Orders and Procedures
CHAPTER 5 The Secondary Market
Introduction
The Over-the-Counter Market
E-Commerce, Information, and Technology
Selling Municipal Bonds
The Basics of Municipal Bond Trading
Municipal Bond Trading
How a Trade Is Done
Municipal Futures
Providers of Data in the Municipal Market
Market Statistics and Indexes
MSRB Record-Keeping Rules
CHAPTER 6 Investing in Bonds
Introduction
The Basic Principles of Investing in Bonds
Measures of Yield and Return
Yield to Maturity and Price
Investment Objectives
Risk Factors
Investor Strategies
Taxation of Municipal Bonds
Other Investment Factors
Investor Categories
CHAPTER 7 Credit Analysis
Introduction
The Rating Agencies
The Rating Process
General Obligation Bonds
Revenue Bonds
Other Factors Affecting Credit
CHAPTER 8 Understanding Interest Rates
Introduction
Determinants of the Overall Level of Interest Rates
Term Structure of Interest Rates
Municipal Bond Rates
CHAPTER 9 Regulatory and Disclosure Requirements
Introduction
The Basis of Federal Tax Exemption
History of Federal Tax Legislation Affecting Municipal Securities
The Current Statutory Exemption
Application of Federal Securities Laws to Municipal Securities
The Municipal Securities Rulemaking Board
CHAPTER 10 Financial Products
Introduction
Interest Rate Swaps
Interest Rate Caps, Floors, and Collars
Other Swap Products
Managing the Asset Side
Credit Default Swaps
APPENDIX Municipal Securities Rulemaking Board Rule
Glossary
Bibliography
Web Sites
Books and Publications
About the Writer
Index