Financial Advisory

One of the biggest financing questions that issuers face is whether to bring the sale to the market as a competitive transaction or a negotiated transaction. With experience in both competitive and negotiated sales, PMA Securities, Inc. provides financial advisory services with a focus on helping issuers determine the most appropriate method of sale.

Financial Advisory Services: Competitive Transaction

PMA's Financial Advisors generally recommend a competitive transaction of sale under the following conditions:

  • The market is familiar with the issuer, and the issuer is a stable and regular borrower in the public market with an active secondary market
  • The issue has a strong unenhanced credit rating
  • The bond issue is backed by the issuer’s full faith and credit or a historical revenue stream
  • The issue is neither too large to be easily absorbed by the market nor too small to attract investors without a concerted sales effort
  • The bonds do not have complex or innovative features
  • Market conditions are stable

Financial Advisory Services: Negotiated Transaction

PMA's Financial Adivsors generally recommend a negotiated transaction of sale under the following conditions:

  • The issue has a low unenhanced credit rating
  • The issue is a complex refunding or has other factors that make the issue market sensitive
  • The municipal market is volatile which makes sale date flexibility important
  • The revenue stream is new or coverage is lean for a revenue bond
  • The District desires to have input in how the bonds are allocated between underwriting firms and distributed to investors
  • The issue has complex factors such as a short call
  • The issue is especially large

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