The Bond Team
Let us say for the purposes of this chapter that you work for a large public water authority (“Authority”) that is going to issue a tax-exempt municipal bond to finance a large project.
What is the difference between an MA and an underwriter? There are two general ways for a public Authority to sell bonds: competitive sale and negotiated sale. In the case of a competitive sale, the Authority-with the advice and assistance of an MA-offers bonds to underwriters. The underwriter who offers the lowest interest rate payment wins the bonds.