Lawson and others with his firm sold millions of dollars of municipal revenue bonds
to clients, which were underwritten by LFC and related to an Arizona charter school and two assisted living facilities in Alabama -- borrowers that Robert Lawson and LFC knew faced financial difficulties.
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).
WTE facilities require a significant capital investment and are typically financed through the sale of municipal revenue bonds
, SWANA said in the paper.
Take a look at Figure 1, which illustrates the yield increments the market is paying an investor to buy BBB-rated municipal revenue bonds
versus AAA general obligation municipal bonds.
Gramm-Leach-Bliley Act (GLB Act) Investment Authorizations for Municipal Revenue Bonds
. 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.
The bonds include a $10.5 million bond offering in October 2014 for bonds relating to an Arizona charter school as underwritten by LFC and sold to LFC customers, as well as subsequent sales of these bonds to LFC customers in the secondary market; secondary market bond sales to LFC customers in 2015 of earlier-issued municipal revenue bonds
relating to the corporate predecessor of the same Arizona charter school; and secondary market sales to LFC customers between January 2013 and July 2015 of earlier-issued municipal revenue bonds
concerning two different assisted living facilities in Alabama.
Included in the reform legislation is a provision that allows banks to underwrite municipal revenue bonds
, an arrangement long supported by GFOA.
225.28(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
This article measures information asymmetry is the market for municipal revenue bonds
. It examines the relationship between bond ratings, sinking funds, quality-differentiated audits, and measures of bond interest cost.