Does it make any difference anymore? Competitive versus negotiated municipal bond issuance

• 成果类型: Article
• 署名作者: Simonsen, W; Robbins, MD
• 署名单位: Syracuse University
• 刊物名称: PUBLIC ADMINISTRATION REVIEW
• ISSN/ISSBN: 0033-3352
• DOI: 10.2307/3110054
• 发表日期: 1996
• 页码: 57-64
• 关键词: market; segmentation; revenue

摘要

Do municipal bonds sold through competition have lower interest rates for issuers than negotiated sales? Research done in the 1970s and 1980s suggests that, all else equal, interest costs are generally lower for competitively bid municipal bonds compared to negotiated bond sales. William Simonsen and Mark D. Robbins explore this question in light of changes in the municipal bond market that suggest a need to revisit this question. Their findings indicate that on average, and all else equal, competitive sales result in lower interest cost to issuers compared to negotiated sales, and that this difference increases with the number of bids received. This research has added salience given several recent scandals and alleged improprieties in the municipal bond market.