Municipal Revenue Bonds
May Offer Higher Yield Potential - Municipal revenue bonds
have the potential to offer both a high level of absolute and relative after-tax current income potential versus GOs of equal maturity (which, generally, are perceived to have a higher credit quality as they are backed by the state's taxing power).
Effective March 13, 2000, well-capitalized state member banks were authorized by the GLB Act to deal in, underwrite, purchase, and sell municipal revenue bonds
without any limitations relative to the bank's capital.
The GLBA also authorizes national banks to directly underwrite, purchase, and deal in municipal revenue bonds
For the nation's cities, the financial services reform legislation would let banks directly underwrite municipal revenue bonds
, while potentially significantly diluting the Community Reinvestment Act's authority to ensure that financial institutions invest in working and low income neighborhoods in cities and towns.
Since that time, regulatory approvals have been obtained, operating permits transferred and the municipal revenue bonds
issued by the City to finance construction of the plant paid off.
The authors find that investors associate sinking fund provisions in municipal revenue bonds
with riskier projects or riskier issuers, either of which results in increased borrowing costs for issuers.
under section five of the Office of the Comptroller of the Currency's regulations, became the first operating subsidiary of a commercial bank to underwrite municipal revenue bonds
28(b)(1), (3), (6), (7), and (8)); and underwriting and dealing in, to a limited extent, certain municipal revenue bonds
, 1-4 family mortgage-related securities, consumer receivable-related securities, and commercial paper, as previously approved by the Board in Crestar Financial Corporation, 83 Federal Reserve Bulletin 512 (1997).
In a decision which could dear the way for small and midsize banks to help cities and towns underwrite or sell municipal revenue bonds
, the Office of the Comptroller of the Currency last week awarded Zions First National Bank the power to underwrite all municipal revenue bonds
UTOPIA will be issuing municipal revenue bonds
during the first quarter of 2004 to fund the project.
Mellon Financial Markets, a Section 20 underwriting subsidiary, was established in 1995 to allow Mellon to deal in bank-ineligible securities, including public-purpose municipal revenue bonds
, investment quality commercial paper and consumer receivable- and mortgage-related securities.
who heads up the financial institutions subcommittee of the House Banking Committee, intends to resume efforts to let banks underwrite municipal revenue bonds
-- a step to reduce the cost of borrowing for cities and towns.