Municipal Securities Primary Financing
Chapters in this video
- 0:00 Municipal securities are exempt from SEC registration
- 1:03 Competitive, negotiated, and private placement sales
- 2:20 Notice of sale and lowest NIC or TIC wins
- 3:07 Advance refunding, escrow, and the 90-day current refunding
- 4:24 Syndicate priority: presale, group net, designated, member
- 5:48 Official statement versus corporate prospectus
- 6:20 MSRB delivery to EMMA and CUSIP application rule
- 7:05 Rapid-fire exam recap
What this video covers
- Why municipal securities are exempt from SEC registration under the Securities Act of 1933, and why the Municipal Securities Rulemaking Board (MSRB) governs them instead
- How competitive sale, negotiated sale, and private placement differ in price determination and process
- Why a notice of sale signals competitive sale, and how the lowest net interest cost (NIC) or true interest cost (TIC) wins the bid
- What advance refunding is, why escrow is used, and the critical post-2017 rule change making advance refundings taxable
- The priority of orders hierarchy for municipal syndicates: presale, group net, designated, then member orders
- Why customer orders always take priority over member orders for a firm's own account
- The official statement (OS) as the MSRB disclosure document, its settlement delivery rule, EMMA submission requirement, and why it is never an SEC prospectus
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