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Municipal Bond (municipal + bond)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Terms modified by Municipal Bond

  • municipal bond market
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    Selected Abstracts

    Debt Schedules of Tax-Exempt Bonds Using NIC

    FINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 5 2001
    Bryan Stanhouse
    Municipal bonds are a large proportion of the total number of securities offered every year. The volume outstanding is more than that of all federal agency debt. It is important that the issuance procedure be as cost efficient as possible. This research develops a model to minimize the net interest cost of a municipal bond issue. Net interest cost remains a highly popular award criteria. The model incorporates the level and shape of the yield curve, the schedule of revenue to be received, and the segmented nature of the municipal market. [source]

    An analysis of the failed municipal bond and note futures contracts

    THE JOURNAL OF FUTURES MARKETS, Issue 7 2008
    Patrick J. CusatisArticle first published online: 2 MAY 200
    This study analyzes the failure of the municipal bond and municipal note futures contracts. The municipal bond contract is shown to have been the most effective hedge in the municipal market over its tenure. Changes in volume in the municipal bond contract were closely related to changes in the volume in the U.S. Treasury bond futures contract, the spot,municipal-over-bonds (MOB) ratio, and visible supply. The failure of the municipal bond contract is mainly attributed to a decrease in trading volume in the U.S. Treasury futures market. This was impacted by the onset of electronic trading, which the municipal futures market was reluctant to embrace. The municipal note contract was a less effective hedge than U.S. Treasury note futures and ten-year London Interbank Offered Rate swaps. The failure of the municipal note futures contract is attributed to the existence of well-established alternative hedges, and segmentation in the municipal market. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:656,679, 2008 [source]

    Measuring Municipal Borrowing Costs: How Missing Cost Information Biases Interest Rate Calculations

    PUBLIC BUDGETING AND FINANCE, Issue 1 2002
    Bill Simonsen
    State and local governments issue billions of dollars' worth of municipal bonds every year. At the same time, no single comprehensive measure has been available for debt managers to apply that fully captures their borrowing costs. In this article we compare a comprehensive measure called the internal financing rate with true interest cost (TIC), applying both to bond sales in Oregon in 1999. We find that the two measures produce statistically and practically different results and conclude that TIC typically understates the real cost of borrowing experienced by issuers. TIC is therefore a flawed measure for reporting results to administrators, elected officials, and the public. It is also an inappropriate measure for evaluating the performance of public debt managers. [source]

    Trading Activity and Price Volatility in the Municipal Bond Market

    THE JOURNAL OF FINANCE, Issue 2 2004
    Chris Downing
    ABSTRACT Utilizing a comprehensive database of transactions in municipal bonds, we investigate the volume,volatility relation in the municipal bond market. We find a positive relation between the number of transactions and a bond's price volatility. In contrast to previous studies, we find a negative relation between average deal size and price volatility. These results are found to be robust throughout the sample. Our results are inconsistent with current theoretical models of the volume,volatility relation. These inconsistencies may arise because current models fail to account for the effects of overall market liquidity on the costs of large transactions. [source]