Washington
Underwriters Push Issuers Not to Use FAs, Firm Warned SEC
Tuesday, October 25, 2011
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Underwriters often push municipal issuers not to hire financial advisors and, if an issuer insists on working with one, prod them to retain broker-dealer FAs, an independent FA firm warned a Securities and Exchange Commission member earlier this month.

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Opinion

Before the financial crisis of 2008-09, it would have been significant news if yields on municipal bonds had exceeded those on Treasury securities at any maturity, and that occurrence likely would have attracted a variety of investors seeking to take advantage of the relative-value opportunity.

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