US broker-dealers have been alarmed by an the Municipal Securities Rulemaking Board proposal to allow municipal advisers to arrange private bond sales without the involvement of a large bank or midsize broker. Figures showed 56% of muni debt deals produced $10m or less, according to data from SEC. Also, they show that 75% of muni-bond issues feature participation from independent advisers, compared with 52% in 2004. Private placements total between $5bn and $20bn annually, a figure that is growing, said Refinitiv.
US broker-dealers have been alarmed by an SEC proposal to allow municipal advisers to arrange private bond sales without the involvement of a large bank or midsize broker. Figures showed 56% of muni debt deals produced $10m or less, according to data from the Municipal Securities Rulemaking Board. Also, they show that 75% of muni-bond issues feature participation from independent advisers, compared with 52% in 2004. Private placements total between $5bn and $20bn annually, a figure that is growing, said Refinitiv.