Municipal Issuers

On October 5th, the MSRB issued a Request for Comment on two draft compliance resources – one for Dealers and the other for Municipal Advisors – concerning New Issue Pricing (“RFC”). Comments are due by January 4th, 2022. The stated goal for the compliance resources is “to enhance understanding regarding the existing regulatory standards applicable to regulated entities’ supervision of conduct when pricing a new issuance of municipal securities.”

A team of finance and technology professionals at Lumesis have harnessed artificial intelligence tools to begin solving practical problems that arise when developing deal-specific yield curves (or scales) during the new municipal bond issuance pricing process.

Lumesis has launched two enhancements to its Secondary Market Pricing Platform with the addition of a yield and spread calculation of taxable term bonds and the inclusion of real-time taxable spreads. For taxable term bond transactions, Lumesis now calculates an average life yield, or cash-flow yield, which considers all cash flows of a term bond as opposed to simply the bond’s yield to maturity.

In this webinar, we highlight the integration of the ICE Municipal AAA Yield Curve into Lumesis’ New Issue and Secondary Market Pricing services and unveil enhancements and real use cases of the Pricing services. We will also discuss the ICE Municipal AAA Yield Curve, its construction and what distinguishes it from other muni benchmarks.

Financial technology company Lumesis has brought on ICE Data Services’ yield curve data sets to bring another layer of information for its municipal bond clients, the firm announced on Monday.