Investing in New Issue Municipal Bonds
Investing in new issue municipal bonds is often complicated for small investors. The primary bond issue process is generally
first available to the largest bond buyers of the Issuers underwriting team only. Unless there is a Retail Order Period
(ROP), it is difficult for individual bond investors to participate during the underwriting period. One reason is that there
is not much time to educate the investor. There are only days, or hours, before the actual pricing of the Bonds, to contact
interested investors and distribute the marketing documents.
In order to take advantage of an underwriting process, and pay the same low price as the largest institutions, the investor
must be aware of the Bond Sale in enough time to do his/her own due diligence and review the Preliminary Official Statement.
If the Bonds are determined to be a suitable investment, the investor can participate during the order period, through his
or her broker, to be allocated Bonds in the New Issue at an agreed upon maximum price. Otherwise, the investor can only
purchase these Bonds by finding them in the secondary market and pay the prevailing market price.
Get Started -- Find
New Issue Bonds
BondUnderwriter.com provides potential bond investors the ability to find and research new issue municipal bonds online via
our New Issue Municipal Bond Search and the New Bond Listings.
The Search and New Bond Listings allows investors to:
- Search New Issue Bonds by a variety of criteria
- Review upcoming municipal bond issues in advance of the bond underwriting
- Access the Preliminary Official Statement, if and when available
- Review preliminary price and yield information, if and when available
- Review final pricing and yield information after the successful sale and award of the Bonds
- View recent bond underwritings, accessing issue details and the Official Statement
The following information will help guide you through the various features for finding New Issue Bonds.
Get Started -- How to find New Issue Municipal Bonds
In order to begin using the sites' Bond Search, it is important for you to already have a basic understanding of fixed
income securities and/or municipal bonds. Tax-exempt bonds are not necessarily a suitable investment for all persons. The
Bond Search is designed to assist the sophisticated bond investor in researching and accessing the primary bond markets.
My Account (MyeBonds)
This is a free, no charge service for investors to receive, retrieve, collect and store information on new issues for
easy monitoring and review. Registration is required. BondUnderwriter, Inc. reserves the right to terminate any account
for any reason at any time.
Registration (MyeBonds)
To register, simply provide the information requested to receive authorization to receive additional information on upcoming
bond issues. Register, confirm your e-mail address, select bond criteria and begin receiving daily e-mail notifications
that meet your investment requirements.
Forgotten Password
For your protection, the password is encrypted to protect users from malicious attacks. If you forget your password,
you should go to Account and then to the password recovery page and the system will generate a new password. You may want
to Login with the new password and change it to something easier to remember.
Alerts
Receive electronic Alerts on any new issue if new information is posted with us by the Issuer, or their Agent. To add
a New Issue from your Alerts to store in your MyeBond account, click on "Get Alerts". The corresponding issue will be Saved
to your My eBonds account for you to view at your convenience. Upon Registration, you can access your account to view or
delete each or all Issue(s). If new information becomes available to us on this issue, you will be sent an email alert providing
a hyperlink to view the new information.
Manage your profile -- "Keep me Posted"
Create and manage Alerts -- Investors interested in updates about specific new Issues posted on this site can sign up
on the site to receive e-mail alerts when there is an update to disclosure, pricing, sale date, or other information. You
can also be notified prior to the expiration of the offering.
Alert Settings - Set your own investment criteria by State and/or purpose or Issuer or delete Settings
My Alerts - Once logged in, you can view and manage you're the complete list of Issues that you have saved in your My eBonds account and change settings.
Notification of changes to an Upcoming Bond Sale (MyeBonds)
All new issue municipal bond issues are subject to changes in its offering details at any time prior to the final pricing.
By signing up for e-mail alerts through MyeBonds, you can review changes up to, and during, the actual bond sale.
We may notify you for the following changes, including but not limited to:
|
- Pricing and Yield
- Coupon Rate
- Maturities
- Sale Date
- Order Period times
- Availability of POS
|
Notification of an Upcoming Bond Sale (MyeBonds)
By signing up for e-mail Alerts through MyeBonds, you can receive daily notifications of bond issues that fit your investment
criteria.
To receive future Alerts, select by clicking on the star on far left column to highlight new issue.
Using the New Issue Map
Typically tax-exempt municipal bond investors prefer their own state of residence for the bonds to purchase for tax reasons.
However, you should consult your financial, tax or legal advisor to discuss your specific situation.
In order to find New
Issues by State, using the U.S. map on the Home page and click on "Choose from the map" under Bond Search and then click
on the State for issues specific to that state only. If the State is not an investment criterion for you, select All States
to view all New Issues. We recommend you narrow your search for New Issue Bonds by further defining the fields available
in the Bond Search.
Using the Bond Search
The online Bond Search allows you to screen by your desired investment criteria. Screening criteria are found in the
Bond Search box and are available by:
State -- Choose from the map to filters new issue bonds by any State/territory or choose All States if your investment criteria
is not State-specific.
Purpose/Type -- Select the type of Bond you are looking for
Issuer -- Select an Issuer by scrolling down the available list of Issuers
Keywords -- Or simply search inserting a keyword into the Search box.
Then click Retrieve Market Activity for a list of recent bond issues that meet your criteria.
Bond Issues meeting your criteria will be searched and sorted for you. For Issue Details, click on Description.
Sale Date -- This is the expected bond sale date. Always subject to change. This is the day the bonds pricing and terms
are locked in between the issuer and the underwriter(s). Indications of interest are generally taken prior to this date.
If "Sold" appears, the issuer has closed the order period for this bond sale and the bonds are no longer available during
the underwriting period. If Sold, click to review final terms; if interested in purchasing these bonds in the secondary
market, consult your broker or financial advisor.
In order to make bonds available to individuals on a first priority basis, there may be an early order period, also known
as the Retail Order Period (ROP). This early order period for individual investors is generally the 1 or 2 days preceding
the actual sale date. For instance, if there a 1 day order period scheduled and the sale date is February 24th, the early
order period giving individual investors priority will be on Feb 23rd; a 2 day order period will be for the 22nd and 23rd.
"*" -- If there is a priority retail order period scheduled for the day preceding the sale date, you will see a
"*" in this field.
If we are not aware of a scheduled priority retail order period, there will be no asterisk.
The definition of Retail will be subject to each Issuer but is generally individuals, financial advisors and trust departments.
There is no upfront brokerage fee/commission paid by investors during this underwriting period; All Bonds sold to retail
will be at the net offering price.
Issuer -- The state, political subdivision, municipality, or governmental agency or authority that is raising funds through
the sale of municipal securities.
Description -- The type and/or purpose of the bonds. Click on the underlined description to view more New Issue details.
Ratings -- The Bonds may be rated by one of three rating agencies i.e. Moody's Investors Service, Standard &Poor's, Fitch
Investors Service Ratings, respectively.
N/A -- Not applied for
N/R -- Non rated
Maturity Dates - The years for each of the final maturities of the Bonds. There may be serial maturities and/or term bonds
here.
Official Statement (O.S.) -- For upcoming Bond Sales, click on the Preview for the Preliminary Official Statement (POS) can be accessed
here, if available to us. For recently sold Bond issues, click here for the final official statement.
The Preliminary Official Statement (POS) describes the proposed new issue of municipal bonds, except for the actual pricing
and final maturities. The interest rate, yields and maturities are finalized on the Bond Sale date and then the Bonds are
awarded to the Underwriter(s) by the Issuer.
The Final Official Statement will detail the final terms and pricing of the issue and is available after the sale date but
prior to the settlement date. The settlement date (closing date) is generally about 10 business days after the sale date.
Prior to expressing interest in participating in a New Issue municipal bond, the potential investor must review the Preliminary
Official Statement (POS) which is displayed, if available to us, by clicking on the far right column of the New Issue announcement
from either the Home Page or Bond Search. If not yet available to us, please e-mail us under the Contact Us tab and request
a copy. We cannot guarantee or assure you that it will be provided in a timely manner but we will try.
The Final Official Statement (OS) is only available once the Issue terms and pricing have been finalized and the bonds have
been awarded by the Issuer to the Underwriter(s). The Bonds have been successfully sold and are now available only in the
secondary market at the current market price. To access an OS, find the issue in Bond Search.
Recent New Issues
For recently sold bond issues, the investor can retrieve the final pricing and maturities by clicking on the description
of the Issue. The final official statement may also be available for review by clicking on the far right column.
Upcoming Bond Sales
For recently announced New Issue Bonds, including Sale Date, Description, etc. Typically, these Bond Sales will occur within
the next week. For more available public information on this issue, click on the Description. The POS may be available by
clicking on the far right column (Preview). For further information, the investor should sign-up to receive e-mail alerts.
How Recent New Issue Municipal Bonds are Displayed
Please be reminded that all upcoming sale information here is preliminary or estimated, and subject to change.
New Issues are posted as they are announced, usually a week before Sale Date. The newest Announcement is immediately placed
at the top of the list but will fall as other upcoming New Issues are added. The Issue will remain in our database but at
week's end following the announced Sale Date, the New Issue is removed. It can later be found through Bond Search with all
the finalized terms, pricing and Official Statement.
Definition of Terms
| | Sale Date -- The estimated bond sale day. Always subject to change. -- The date the issue is priced and the interest rates and par amounts are officially accepted by the issuer. The sale date is generally also considered to be the date the issuer
"awards" the bonds to the underwriter(s). |
| | Issuer -- A state, political subdivision, municipality, or governmental agency or authority that raises funds through the sale of municipal securities. This includes, but is not limited to states, cities, counties, townships, special districts, redevelopment agencies, schools, not-for-profits (501c3), and U.S. territories. |
| | Description |
| | Size -- This is the estimated Issue par amount and is displayed in millions. It is the total dollar value of all bonds offered. |
| | Rating(s) -- The ratings are displayed in the following format: Moody's/Standard & Poor's/Fitch. NA is if the rating is not yet available; NR (Non-rated) is if no rating was applied for. |
| | Maturity Date(s) -- the range of maturities for the bonds. This are the dates when the principal on the bond is scheduled to be repaid to the investor. Bonds typically range from 1 to 30 years. In general, the further out the maturity date, the higher the investment return (yield) to the investor. |
| | Term Bonds -- Bonds comprising a large part or all of a particular issue that come due in a single maturity, typically due more than one year after the final amortization of the serial bonds. The issuer agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity or for payment at maturity. |
How to Buy Bonds
The "Primary market" refers to the initial issuance and sale of bonds by an issuer. This site is exclusively for accessing
only the negotiated primary market. Please find below a general description of how to buy bonds during the underwriting
period. The information provided below is not investment advice. Please contact your investment advisor for investment advice.
How to Buy Bonds
An Issuer sells its bonds in the primary market through brokerage firms to various willing purchasers, including individual
investors and institutional investors, such as banks and mutual funds. A description of the step-by-step process to purchase
bonds in the primary market is provided below. (Note: Issuers sometimes provides individual investors with the opportunity
to place orders to purchase bonds before other investors (such as commercial banks and other institutional investors). This
early order period is known as the "Retail Order Period". A benefit of the Retail Order Period is that it provides individual
investors with a chance to place orders prior to institutional investors. The Retail Order Period generally occurs one or
two days prior to the bond sale date. Orders from District residents are given priority.)
Step-by-Step Process to Purchase a New Issue Bond in the Primary Market
Step 1 -- Have a brokerage account
An Issuer does not directly sell its bonds in the primary market. Instead, the District sells its bonds through brokerage
firms that it selects to participate in the initial bond sale (collectively, such firms are the underwriting syndicate).
To buy a New Issue bond, you must have an account either with one of the participating brokerage firms or with another firm
that can place an order through a participating brokerage firm. Go to Current Bond Offerings and look under the subheading
"Participating Brokerage Firms" to view the attachment setting forth the participating brokerage firms for a current bond
offering.
If you have a brokerage account, go to Step 2.
If you do not have a brokerage account, you will need to open one in order to purchase bonds. The new account process may
take some time to complete. Investors are encouraged to begin the process well in advance of a bond sale date. Each brokerage
firm has its own requirements for opening an account.
BondUnderwriter Inc. does not endorse any particular brokerage firm and does not guarantee that any particular firm will
open an account for an investor.
Step 2 -- Learn about the bonds
Read the preliminary official statement and/or final official statement, as applicable (go to Current Bond Offerings to access
the preliminary or final official statement for current bond offerings). Preliminary and final official statements contain
detailed information about a bond offering, including a complete description of the security for the bonds, the principal
repayment (maturity) dates, the interest payment dates, the credit ratings and the use of the bond proceeds. A thorough
review of the complete document is essential to making an informed investment decision.
Step 3 -- Place your order
Contact your brokerage firm for more information about how to buy bonds during an initial offering. You may wish to discuss
with your brokerage firm or investment advisor the amount you want to invest, when you would like your investment returned
to you, and the interest that you would like to earn on your investment, as well as any questions you may have after examining
the official statement, preliminary and/or final.
Frequently Asked Questions
Access to services and your My eBonds may be limited or unavailable during peak demand, market volatility, system upgrade,
maintenance or for other reasons.