5.7 How Bonds Are Marketed to Investors

5.7 How Bonds Are Marketed to Investors

In an effort to achieve the financing objectives of the issuer, including the lowest interest costs, a public agency issuer may seek to market a debt issuance to investors in a particular market (i.e., “target” investors). The issuer should consider how a debt issuance should be marketed to investors as soon as an underwriter and other financial team members are selected. In a negotiated sale, the senior managing underwriter should develop a marketing plan before the sale date of the debt issuance. A marketing plan should identify the target investors and propose a marketing strategy, which may include a retail order period, to market bonds to those investors. Issuers should assess how the marketing plan meets their goals with regard to distribution of the bonds.