Muni bond experts defend underwriting advice

Author: | Published: 4 Oct 2011
US municipal bond experts have defended underwriting communications threatened by pending US Securities & Exchange Commission (SEC) clarification of the term municipal adviser.

Municipal Securities Rulemaking Board (MSRB) Rule G-23 prevents municipal advisers from underwriting municipal securities. However panelists at a Securities Industry and Financial Markets Association conference on September 27 said the inverse should be allowed, assuming advice is defined broadly.

Kenneth Gibbs, municipal securities group president at Jefferies & Company, said advice is an integral part of the underwriting service. "I think [the rule...