Headlines
Stephens Inc., Knight BondPoint, and BondDesk join RBDA

In twelve months, RBDA has grown from 14 to 27 member firms including the most recent additions of Stephens Inc., Knight BondPoint and BondDesk. RBDA continues to enhance our position as THE ONLY ADVOCATE in Washington, DC for non-bulge bracket securities dealers active in the U.S. domestic fixed income markets.

For more information on the benefits of RBDA membership, our advocacy and meeting agendas please log on to www.regionalbonddealers.com or contact Michael Decker or Mike Nicholas at 703.486.5672.

• BQ issuance increased
• 2% de minimum applied to banks
• AMT exemption

Working in conjunction with state and local issuer groups, RBDA was able to ensure help for the municipal bond market was included in the final stimulus package signed by President Obama.

Specifically, the signed legislation includes the following tax code changes:

• Two-percent de minimis provision for banks: Financial institutions will be able to hold up to two percent of their assets in any tax-exempt bonds-not just bank qualified bonds-with a 20 percent interest deduction disallowance. This provision applies to bonds issued between January 1, 2009 and December 31, 2010 and to subsequent refundings of those bonds.
• Bank qualified bonds: The annual issuance limitation for bank qualified tax-exempt bonds will be raised to $30 million from $10 million. This provision will apply to bonds issued between January 1, 2009 and December 31, 2010.
• Bank qualified look through election: A bond of a conduit issuer will be considered bank qualified even if the issuer issues more bonds than the annual bank qualified limit as long as all borrowers for the issue would otherwise be bank qualified if they issued on their own rather than through a conduit.
• AMT repeal: The corporate and individual AMTs will not apply to any tax-exempt bonds issued between January 1, 2009 and December 31, 2010.
• Tax credit bonds and taxable bond option: In lieu of tax-exempt bonds, states and localities will be able to issue tax credit bonds for projects that otherwise would have qualified for tax-exempt financing. The interest on tax credit bonds will be taxable to investors. Investors in tax credit bonds will be eligible for nonrefundable federal income tax credits equal to 35 percent of the taxable interest they receive from issuers. For the years 2009 and 2010, issuers may choose to receive the 35 percent credit directly in the form of a cash payment from the federal government.

The bill also includes numerous other provisions related to state and local capital finance such as tax credit bonds for school construction and renewable energy facilities.

For additional information please don’t hesitate to contact us.

House Financial Services Committee Oversight Plan

The House Financial Services Committee yesterday approved its 2009-2010 Oversight Plan, a sort of business plan of issues to be addressed during the 111th Congress. A copy of the plan is can be found here. Issues covered in the plan include, among many others:

Financial regulatory reform: "The Committee will assess the effectiveness of the current regulatory regime for the financial services industry and work to establish a more efficient oversight structure that may include a systemic risk regulator."

Auction rate securities: "The Committee will continue to monitor the efforts of the SEC, the Financial Industry Regulatory Authority, state securities regulators, and other law enforcement agencies to reach settlements with financial institutions to buy back illiquid auction rate securities from retail investors."

Summery

RBDA Addressing ARS and VRDN Problems

The RBDA, together with the Education Finance Council (EFC), sent this letter to the Treasury Department in response to their request for comment on implementing provisions of the emergency financial authority enacted earlier this month. The RBDA and EFC said that Treasury should use its authority to provide liquidity facilities to VRDN issuers and ARS issuers who want to convert their securities to VRDNs.

For additional information please contact Michael Decker at the RBDA at 703-4867-5672 or mdecker@regionalbonddealers.com.

RBDA Promotes a Level Playing Field for Municipal Financial Advisors

At the top of RBDA's 2009 public policy agenda is to work with federal regulators and policy makers to level the playing field when it comes to municipal financial advisors. Unlike financial advisors at registered brokerage firms, "independent" financial advisors are completely unregulated while offering issuance and investment advice to state and local municipal bond issuers, in addition to structuring private placements.

RBDA Encouraging SIFMA to End Early Closes in Bond Market

Following a statement by the U.S. Treasury, the RBDA sent the following letter to SIFMA CEO Tim Ryan encouraging SIFMA to stop recommending early closes in the bond markets.

RBDA Letter to SIFMA.

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Upcoming Events
RBDA Hosting the ONLY CONFERENCE of the Year for Regional Fixed Income Dealers

National Fixed Income Conference & RBDA Annual Meeting
April 23 & 24, 2009 at the Four Seasons Resort in Dallas, TX

The only conference of the year exclusively for regional, middle market fixed income dealers. Structured for senior, fixed income management at both taxable and municipal bond dealers.

Highlights:

• Matt Winkler, Editor-in-Chief, Bloomberg News
• Bob McTeer, former president, Federal Reserve Bank of Dallas
• Regulation of the fixed income markets
• The future of fixed income technology
• Dealer roundtables

Agenda and Registration

RBDA Meeting with Bloomberg Senior Executives

On March 4, RBDA members are meeting with the most senior leadership at Bloomberg regarding the fixed income technology needs of regional broker dealers plus Bloomberg’s new management and business model post credit crisis. Included in the meeting from Bloomberg are:

• Dan Doctoroff, President
• Tom Secunda, Founding Partner
• Scott Miller, Head of Sales, Americas
• Karen Thomas, Head of Sales, Southeast U.S.

Recently Completed:

Fixed Income Legal & Compliance Roundtable
Co-hosted by Raymond James and RBDA
February 12 & 13, 2009 at Raymond James in St. Petersburg, FL
Two-day roundtable of dealer-to-dealer discussion of key fixed income legal and compliance challenges specific to regional, middle market dealers.

National Municipal Bond Summit
Co-hosted by The Bond Buyer and RBDA
February 19 & 20, 2009 at The Eden Roc Hotel in Miami, FL
Conference and Registration Information
First of it's kind all encompassing event for the entirety of the municipal bond market.
 
For more information, including sponsorship and exhibit opportunities, please contact Mike Nicholas at the RBDA at 703-486-5672 or mnicholas@regionalbonddealers.com.
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Member Services
Compensation Survey for Regional, Middle Market Dealers

RBDA is organizing a detailed compensation survey of ten distinct areas within regional, middle market fixed income dealers including the head of fixed income, trading, sales, compliance, operations, banking and more.

The survey will include complete data from 2007 and 2008 and will be released in early fall 2009. The survey will be free for RBDA member firms that submit data. For all others, there will be a fee for the final survey.

Download the Compensation Survey

For information on RBDA membership please contact Mike Nicholas at mnicholas@regionalbonddealers.com or 703-486-5672.

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Contact Us
The Regional Bond Dealers Association is the only U.S. based trade association that exclusively represents regional, middle-market fixed income dealers. RBDA membership is composed of firms active in all markets, retail and institutional, bank owned and independent.

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