|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Bond Dealers Say Plan to Ban Underwriting Advice May Increase Debt Costs |
Bloomberg - Aug. 19, 2010 - by Martin Z Braun
The head lobbyist for U.S. regional bond dealers said a proposal to prevent banks from both advising on and underwriting municipal deals may raise financing costs for small towns and school districts.
They might not be able to get enough bidders for their debt, Mike Nicholas, chief executive officer of the Washington- based Regional Bond Dealers Association, said today. The Municipal Securities Rulemaking Board, which this week proposed a ban, should allow firms to serve in a dual role in some cases, such as competitive auctions of debt, he said.
Mary Schapiro, the chairman of the U.S. Securities and Exchange Commission said May 7 that she wants to stop the practice, calling it an inherent conflict of interest. It can lead firms to recommend transactions that aren’t suitable or that aren’t offered at the best price, she said.
“If the chairman of the SEC is making a strong case for a change in practices, issuer-underwriter practices, it’s tough to see how that’s not going to happen,” Nicholas said in an interview in New York. “We’re looking forward to working with the SEC and MSRB on making sure it’s done in a conscientious way.”
The rulemaking board devises regulations for the industry; the SEC enforces them.
Unlike corporations, many local governments don’t have employees who specialize in raising capital, forcing them to rely on finance firms for advice on borrowing in the $2.8 trillion municipal bond market.
Negotiating Deals
About 80 percent of the market is “negotiated” -- governments agree in advance to sell the securities to a preselected underwriter -- so dealers have an interest in exclusive relationships with municipalities. In a negotiated sale, prices and interest rates are set by the underwriter, rather than by banks at a competitive auction.
Barring dealers from working as advisers on competitive deals and then bidding on the bonds might raise borrowing costs for small issuers by limiting competition to buy the debt, Nicholas said.
“They have fewer firms that want to come in and underwrite that $7 million issue for fire trucks for Brownsville, Maryland,” said Nicholas. “We hear stories all the time of issuers that can’t get bids.”
He wasn’t able to immediately identify them.
For the complete article visit Bloomber.com
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
