Municipal Securities: Rapid Fire
Chapters in this video
- 0:00 GO versus revenue: the core split
- 0:51 Double-barreled bonds and special structures
- 2:28 Tax math and triple tax-free status
- 2:57 Taxable equivalent yield formula
- 4:27 Syndicate accounts and order priority
- 5:50 Exam traps: legal opinions, flow of funds, AMT
- 7:35 Rapid-fire recap: numbers and one-liners
What this video covers
- General obligation (GO) versus revenue bond backing, voter approval requirements, and why double-barreled bonds offer two streams of security
- Triple tax-free status for in-state municipals and why U.S. territory bonds are triple tax-exempt for investors in all states
- Taxable equivalent yield (TEY) formula execution and the common trap of multiplying by the tax rate instead of dividing by (1 minus the rate)
- Eastern (undivided) versus Western (divided) syndicate account liability and the presale, group net, designated, member order priority
- Gross pledge versus net pledge flow of funds and why net is the exam default unless stated otherwise
- Alternative minimum tax (AMT) trigger on private activity bonds versus traditional governmental bonds
- Callable muni yield quoting rules, flat trading in default, and the MSRB, Financial Industry Regulatory Authority (FINRA), and Securities and Exchange Commission (SEC) regulatory hierarchy
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