Secondary Market Overview
More than $500 million of Build America Mutual-insured bonds trade in the secondary market each week, with block sizes ranging from $5,000 to several million dollars. Investors and their financial advisors can search for BAM-insured bonds on major electronic trading platforms to find investments that meet their needs – so there is always a BAM-insured bond available that meets the state, coupon, and maturity needs of your portfolio, even if new issues are not available when you are ready to invest.
BAM also offers secondary market insurance for existing bonds that were sold without a BAM guaranty. Secondary market insurance transactions can be executed quickly and allow investors to obtain BAM’s AA/Stable rating from S&P Global Ratings, and a new, tradeable CUSIP that is tracked on all major market-information platforms, including Bloomberg, ICE, and the Municipal Securities Rulemaking Board’s EMMA system.
Secondary-market insurance can be used for:
- Risk Management
- Portfolio Management
- Relative Value Trading
More than 70,000 CUSIPs have been pre-approved for insurance. Search BAM’s Secondary Capacity database to determine if your bonds are eligible, or contact BAM’s secondary markets desk for more information.
Secondary Bonds In Focus
Issuer:City of Ontario, Calif.
Series: Pension Obligation Bonds, Series 2020
First Insured: 5/27/2020
Secondary Par Outstanding: $86.5 Million
Issuer:Broward County, Fla.
Series: Airport System Revenue Refunding Bonds, Taxable Series 2019C
First Insured: 6/29/2020
Secondary Par Outstanding: $4.99 Million
Issuer:University of Illinois
Series: Auxiliary Facilities System Revenue Bonds, Series 2020 (A)
First Insured: 7/16/2020
Insured Par Oustanding: $28.8 Million