{"title":"市政债券发行成本","authors":"Marc D. Joffe","doi":"10.2139/ssrn.2650226","DOIUrl":null,"url":null,"abstract":"My research team collected cost of issuance information from Official Statements representing over 800 bond issuances since 2012. We found that costs of issuance including underwriter discounts averaged 1.02% of bond principal. Further, we found substantial variation in the sample, with six California school district issuers incurring costs in excess of 8.5%. To determine the composition of issuance costs we sent public records requests to a subset of issuers, receiving 180 responses. The four largest contributors to total issuance costs were underwriter discounts, legal expenses, financial advisor fees and rating agency charges – in that order. We argue that some combination of increased price transparency and intervention from higher levels of government could substantially reduce issuance costs faced by local governments, especially smaller ones.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"31 5","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2015-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":"{\"title\":\"Municipal Bond Costs of Issuance\",\"authors\":\"Marc D. Joffe\",\"doi\":\"10.2139/ssrn.2650226\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"My research team collected cost of issuance information from Official Statements representing over 800 bond issuances since 2012. We found that costs of issuance including underwriter discounts averaged 1.02% of bond principal. Further, we found substantial variation in the sample, with six California school district issuers incurring costs in excess of 8.5%. To determine the composition of issuance costs we sent public records requests to a subset of issuers, receiving 180 responses. The four largest contributors to total issuance costs were underwriter discounts, legal expenses, financial advisor fees and rating agency charges – in that order. We argue that some combination of increased price transparency and intervention from higher levels of government could substantially reduce issuance costs faced by local governments, especially smaller ones.\",\"PeriodicalId\":403078,\"journal\":{\"name\":\"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal\",\"volume\":\"31 5\",\"pages\":\"0\"},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2015-08-26\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"1\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.2139/ssrn.2650226\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"\",\"JCRName\":\"\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2650226","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
My research team collected cost of issuance information from Official Statements representing over 800 bond issuances since 2012. We found that costs of issuance including underwriter discounts averaged 1.02% of bond principal. Further, we found substantial variation in the sample, with six California school district issuers incurring costs in excess of 8.5%. To determine the composition of issuance costs we sent public records requests to a subset of issuers, receiving 180 responses. The four largest contributors to total issuance costs were underwriter discounts, legal expenses, financial advisor fees and rating agency charges – in that order. We argue that some combination of increased price transparency and intervention from higher levels of government could substantially reduce issuance costs faced by local governments, especially smaller ones.