Municipal Liquidity Facilities and the "101s" of a Municipal Bond Offering

Summary

Municipal bond transactions offer funds (often tax-exempt) to governmental entities and nonprofits in the form of a debt obligation to help foster, build, and maintain public projects in the community, which include constructing and maintaining schools, hospitals, highways, sewer systems, and affordable housing, to name a few. This practice note goes through the step-by-step process behind a municipal bond offering, operating as the secret backbone behind the everyday public projects in your local communities and highlights one particular nuance within municipal bond transactions—municipal liquidity facilities and other credit enhancements.