Market Analysis for Municipal Securities

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Chapters in this video

  1. 0:00 Why BB11 yields less than BB20
  2. 1:07 Bond Buyer 20, 11, and 40 indexes
  3. 2:39 New-issue-only rule and the AA vs A trap
  4. 5:00 Visible supply: the 30-day windshield
  5. 5:41 Placement ratio: the prior-week rearview
  6. 6:35 Supply, demand, and yield pressure
  7. 7:56 Rapid-fire exam recap

What this video covers

  • What the Bond Buyer 20 (BB20), Bond Buyer 11 (BB11), and Bond Buyer 40 indexes each track, including credit ratings and maturities
  • Why all three Bond Buyer indexes measure new-issue yields, never secondary market prices
  • Why the BB11 yields LESS than the BB20 even though 11 is a smaller number (higher credit quality means lower yield)
  • What visible supply measures, and why the 30-day forward window is the detail the exam hammers
  • What the placement ratio measures, and why the prior-week backward window is its defining feature
  • How high visible supply puts upward pressure on yields, and why a low placement ratio signals rising yields ahead
  • The general obligation (GO) versus revenue bond split across the BB20, BB11, and BB40

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