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Municipal Issuer

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Municipal Issuer
A local, provincial or state government that issues a bond. Municipal issuers seek to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a bond to build a new school or a new playground. Bonds from municipal issuers are exempt from federal income taxes and sometimes from state and local taxes as well. Risk varies with the issuer and the particular type of municipal bond.


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We feel this will broaden the appeal of a very attractive asset class and provide greater diversification in distribution for municipal issuers.
The question of whether a municipal issuer should incur debt in the first place (and whether its obligations should be backed by its taxing authority or otherwise) rather clearly is one as to which decentralized decisionmaking is appropriate, but extrapolating that observation into a claim that decentralized decisionmaking about what is to be disclosed to cross-border investors is unconvincing.
NLC President Clarence Anthony praised the SEC and noted that working together is the most positive way to ensure a clean marketplace for cities and other municipal issuers: "This settlement sends a clear message that cities that have been victimized municipal issuers that they can get help and compensation from dealers who have imposed excessive markups.
 
 
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