Bond Buyer Municipal Securities Indexes

Read the Free Lesson → free · no signup wall

Chapters in this video

  1. 0:00 Why municipal bonds need The Bond Buyer
  2. 1:36 The four key Bond Buyer indexes
  3. 2:05 The 11 and 20 GO Bond Index VIP club
  4. 3:40 Revdex-25 and the 40 Bond MBI buffet
  5. 4:51 The 6% standardized coupon trap
  6. 5:27 Rising yields, falling prices in the muni market
  7. 6:06 Rapid-fire exam recap

What this video covers

  • What The Bond Buyer is (a daily municipal market publication) and why underwriters reference its indexes before bidding on new issues
  • Why the 11 GO Bond Index is a subset of the 20 GO Bond Index, and why both contain only general obligation bonds
  • How the 40 Bond Index (the Municipal Bond Index, or MBI) is the only index that mixes general obligation and revenue bonds
  • The exam-favorite detail that the 40 Bond Index standardizes prices to a 6% coupon (not 4%, 5%, or 8%)
  • Why the Revdex-25 tracks revenue bonds only, with the "Rev" in the name as the giveaway
  • Average credit quality across the four indexes (Aa1/AA+, Aa3/AA, A or better, and A1/A+)
  • How to interpret rising index yields as falling bond prices, and what that signals to underwriters pricing new issues

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.

Read the Free Lesson → free · no signup wall