New Issue Municipal Bonds

New issue (primary market) municipal bonds are a major source of supply for institutional investors. Historically, individual investors account for less than 2% of the primary market par amount purchased from 2018-2022.[1]

Bernardi Securities (BSI) enables direct primary market access for individual and institutional investors, alike.

Access to BSI underwritten primary market issues is available on the firm’s non-fee platform model. In these instances, transaction costs are borne by issuer rather than the investor. And there are no transactions costs paid by the investor. This is unique in that the cost of issuance is paid for by the issuer authority. FINRA describes the various forms of transaction costs here.

Transaction costs include commissions, markups, sales loads, or surrender charges. These are not applicable to investors when investing in the primary market at the original issue cost on the BSI platform.

Primary market municipal bonds enable several benefits for separate account portfolios, including:

    • No transaction costs incurred by investor, given cost of issuance is paid for by issuer
    • No ongoing management fee
    • Access to large supply of bonds on a weekly basis
    • Diverse group of issuers located nationwide
    • Taxable and tax-exempt municipal bonds
    • Institutional-like access to the primary market

The new issue municipal bond market is vital to issuers seeking to finance projects to meet the needs of their constituents. The new issue market may also provide investors an opportunity to access different bonds from those accessed in the secondary market.


Give us a call to learn more about direct access to the primary municipal bond market.