Some Kansas cities and schools still use an Underwriter as their “financial advisor”! Here’s how to find out if you do [in 3 EASY STEPS]
Although it's widely considered a "best practice" to use an independent advisor (i.e., not an underwriter-broker/dealer) when issuing municipal bonds, some local governments still use an underwriter as their advisor! Key reasons to NOT use an underwriter/broker-dealer as your advisor: Underwriters sometimes don't take competitive bids, and dictate the interest rate in a "negotiated" bond sale! Underwriters have other clients (bond buyers) who want a high interest rate (the opposite of what you want!) Underwriters have an incentive to put higher interest rates on your bonds so they can more easily sell them If an underwriter takes competitive bids, federal law [...]