In The Handbook of Municipal Bonds, editors Sylvan Feldstein and Frank Fabozzi provide traders, bankers, and advisors among other industry participants with a well-rounded look at the industry of tax-exempt municipal bonds. Chapter by chapter, a diverse group of experienced contributors provide detailed explanations and a variety of relevant examples that illuminate essential elements of this area. With this book as your guide, you ll quickly become familiar with both buy side and sell side issues as well as important innovations in this field.
Autorentext
SYLVAN G. FELDSTEIN, PHD, is a Director in the Investment Department of the Guardian Life Insurance Company of America, specializing in tax-exempt, taxable, and non-U.S. municipal bonds. Prior to this, he was a research manager and analyst at major Wall Street broker-dealers and a rating agency. A graduate of Columbia University, Feldstein has won the Analyst of the Year Award from the National Federation of Municipal Analysts in addition to authoring or editing four other municipal bond industry books.
FRANK J. FABOZZI, PHD, CFA, is Professor in the Practice of Finance at Yale University's School of Management and the Editor of the Journal of Portfolio Management. In 2002, he was inducted into the Fixed Income Analysts Society Hall of Fame and, in 2007, was the recipient of the C. Stewart Sheppard Award given by the CFA Institute.
Klappentext
Over the past twenty years, the municipal bond industry has seen enormous growth and undergone dramatic change. With more municipals outstanding than ever, it's fair to say that the municipal debt market continues to constantly evolve.
That's why you need a comprehensive guide covering this fast-changing field. In The Handbook of Municipal Bonds, editors Sylvan Feldstein and Frank Fabozzi provide traders, bankers, and advisors—among other industry participants—with a well-rounded look at the industry of tax-exempt municipal bonds. Chapter by chapter, a diverse group of experienced contributors will share their expertise in this area with you.
In addition to covering credit research, portfolio manage-ment, and critical legal and tax issues, this book will introduce you to a variety of new innovations in financial structures. These include credit default swaps, derivatives, tender option bonds, collateralized debt obligations, and much more. You'll also discover how to effectively implement these instruments in your everyday financial endeavors as well as learn why both buyers and issuers must pay close attention to the risks found within this evolving market.
Along with a comprehensive glossary of municipal bond terminology, this book also contains an extensive array of case studies that offer information on some of the most innovative and essential aspects of these bonds. The cases cover a wide range of topics arising from the 9/11 catastrophe, subprime loans, a major airline bankruptcy, and others. They are relevant for both buyers and issuers of municipal bonds.
Divided into seven comprehensive parts, The Handbook of Municipal Bonds provides detailed explanations and a variety of relevant examples that illuminate crucial components and essential areas such as:
- The Sell Side: deals, distribution, and market-making roles
- The Buy Side: institutional investors
- Credit analysis
- Compliance issues
- Fixed income analysis of municipal products
- Special security structures and their analysis
- Bond Insurers
Municipal bonds offer attractive opportunities for both retail and institutional investors. But to make the most of them, you need a firm understanding of the many elements that make up this market. With The Handbook of Municipal Bonds as your guide, you'll learn how to efficiently integrate "munis" into your investment portfolio.
Zusammenfassung
In The Handbook of Municipal Bonds, editors Sylvan Feldstein and Frank Fabozzi provide traders, bankers, and advisorsamong other industry participantswith a well-rounded look at the industry of tax-exempt municipal bonds. Chapter by chapter, a diverse group of experienced contributors provide detailed explanations and a variety of relevant examples that illuminate essential elements of this area. With this book as your guide, you'll quickly become familiar with both buy side and sell side issues as well as important innovations in this field.
Inhalt
Foreword xxxi
Christoper Kit Taylor
Preface xxxiii
About the Editors xxxix
Contributing Authors xli
PART ONE The Sell Side: The Originators of Deals 1
CHAPTER 1 The Central Place of States and Local Governments in American Federalism 3
Richard Briffault
The States 7
The Complex Structure of American Local Government 12
From Dillon's Rule to Home Rule 17
Forms of Local Government 19
Metropolitan Governance 21
Summary 23
CHAPTER 2 An Overview of Investment Banking 25
Herman R. Charbonneau
Overview of Public Finance Banking 25
Regional Broker-Dealer Firms 29
Strategic Advantages for the Regional Firm 31
Disadvantages Faced by the Regional Firm 34
Importance of a Well-Defined Plan 35
Recent Challenges 39
The Outcome of Regional Banking Efforts 41
CHAPTER 3 Role of the Financial Advisor 43
William H. Wood
Overview of Financial Advisors and Their Roles 43
Financial Advisors in Negotiated Transactions 44
Financial Advisors in Competitive Transactions 45
Securities Dealers as Financial Advisors 45
Independent Financial Advisors 46
Pricing of Financial Advisory Services 46
Details Regarding the Financial Advisor's Functions 47
Typical Advisory Services Provided In Connection with an Interest Rate Swap 48
How to Hire a Financial Advisor 49
Summary 50
CHAPTER 4 Method of Sale in the Municipal Bond Market 51
Jun Peng, Kenneth A. Kriz, and Tracy Neish
Method of Sale 52
Debate on the Method of Sale 57
Historical Data on Use of Sale Method 62
Summary 66
CHAPTER 5 The Role of Bond Counsel in Public Agency Financing 69
John L. Kraft
History of Bond Counsel 69
Review of Bond Counsel Opinion 70
Further Tax Developments 75
Disclosure and Securities Laws 75
Recent Developments 76
CHAPTER 6 The Role of Counsel to the Underwriters 79
Mary G. Wilson
Structuring 80
Securities Laws 80
Underwriting Documents 85
Review of Other Bond Documents 87
Blue Sky 88
Opinion 88
Summary 89
CHAPTER 7 Summary of Federal Tax Requirements for Tax-Exempt Bonds 91
Perry E. Israel
Arbitrage 93
Private Activity Bonds 108
Other Miscellaneous Rules, Including Refundings 120
Conclusion 125
CHAPTER 8 The Role of the Municipal Bond Trustee 127
James E. Spiotto
The Nature of the Bond Trustee's Duties and Responsibilities 127
The Municipal Bond Trustee Preclosing 132
Administration of the Transaction by the Bond Trustee 135
Selected Challenges and Issues for
Municipal Trustees Postissuance 137
Summary 144
Chapter 9: The Last Resort for Financially Distressed Municipalities 145
James E. Spiotto
Historically, Bankruptcy Has Been a Mechanism of Debt Adjustment in Other Countries 149
Brief History of Municipal Bankruptcy Legislation in the United States 150
Existing Municipal Bankruptcy Provisions 153
Ini…