Bond underwriters serve an important role in municipal bond transactions. An underwriter markets an issuer’s bonds, purchases them from the issuer and resells them to investors. Any unsold bonds are generally underwritten, meaning that the underwriter utilizes their own capital to purchase the balances and takes the risk of interest rate fluctuations.
Read MoreAssessed value (“AV”) is the dollar amount of taxable property within district boundaries on a county assessor’s roll. Taxable property includes residential property such as single family homes, condos and apartments, and non-residential property such as commercial, industrial and agricultural properties. Learn what assessed value is in the blog post.
Read MoreCalifornia school and community college districts frequently issue general obligation bonds (“GO Bonds”) to finance their large capital projects such as construction, modernization, renovation or equipping of educational facilities. GO Bonds must be approved by voters within district boundaries. Voters approve the total amount of bonds that can be issued (the authorization amount) and what the funds can be spent on (the project list).
Read MoreWithin the past few years, the concept of the repayment ratio (or debt ratio) has gained traction as a metric for assessing a bond financing’s cost-effectiveness. The repayment ratio is equal to a financing’s total debt service divided by its principal amount. Learn more about bond repayment ratios.
Read MoreMany school and community college districts have previously issued bonds in a higher interest rate environment. With interest rates still near historic lows, opportunities to refinance (or refund) debt exist for many districts. In this post, learn more about bond refinancing.
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Chet Wang is a registered municipal advisor with an exclusive focus on California education municipal bonds.
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