Select Page

Municipal Underwriting

Municipal bond underwriting is the process of raising funds for a municipality by creating a new security to be sold to investors. Through this process, the issuing municipality receives the needed funds at the time of the bond sale by selling new municipal bonds that will be repaid sometime in the future. The coupon payment and interest rate of these bonds are determined before the bonds are sold in the primary market and are designed to provide the needed funds to the issuer at the lowest total cost.

Alamo Capital has the structure and capabilities to underwrite on new bond issues.  We have long-standing relationships with the State of California and have been appointed as Co-Senior Manager, Co-Manager and as a Selling Group member on various issues throughout the years.

There are two types of municipal bond underwriting deals:

  • Competitive: Through a competitive sale, numerous underwriters (or groups of underwriters) submit bids to the issuers recommending the coupons and yields at which they can sell the new bond issue. The underwriter (or group) that proposes the lowest cost to the issuer is awarded the deal and is then responsible for selling the new bonds to investors at their proposed levels.
  • Negotiated: Though a negotiated sale, one underwriter (or group) negotiates directly with the issuer to determine the coupons and interest rates at which the new issue will be sold. These levels are designed to minimize the cost to the issuer while still being inexpensive enough for investors to buy the bonds.

Recognized by the State of California’s Treasurer’s Office as a:

  • 2015-2017 Underwriter Pool (Public Finance Division)
  • Women Business Enterprise
  • Member of the State Treasurer’s Office Small Firm Program


Contact Us: If you would like to invite Alamo Capital as an Underwriter or would simply like to learn more about our underwriting capabilities, please call (925) 472-5720 and ask for our Underwriter or email

Website developed by Ryan McBride