Blue List

What Is the Blue List?

The blue rundown is a daily listing of bonds, generally of the tax-exempt municipal assortment, that are presently available to be purchased by banks and dealers who address the offerings.

Grasping the Blue List

The printed variant of the blue rundown included fundamentally tax-exempt municipal debt securities. Then, at that point, as now, these investment products have essential terms defined, for example, the notional amount, interest rate yields, and maturity date. Typically their classification is from their level of default risk, the type of issuer, and income payment cycles.

There are two fundamental sorts of municipal bonds that would have appeared on a blue rundown.

1. A general obligation bond (GO) is issued by legislative elements, however not backed by revenue from a specific project. A model would be a GO bond to fund the construction of a toll road. Dedicated property taxes back a few GO bonds while others are payable from general funds.
2. A revenue bond gets principal and interest payments through the issuer or sales, fuel, inn occupancy, or different taxes. At the point when a municipality is a conduit issuer of bonds, an outsider covers interest and principal payments.

Electronic Blue List

Historically, a bond's quality rating didn't show up on the blue rundown. Since these listings are currently accessible electronically, this data may now seem relying upon the platform being used. Data on the electronic blue rundown accessible to investors today include:

• The name of the bond giving authority, for example, the corporate or state, municipality, or district organization
• The CUSIP number is a unique identification symbol assigned to all stocks and registered bonds in the United States and Canada.
• The coupon rate for the investment is the annual rate of interest paid on the face value of the bond, displayed as a percentage. For instance, a 5% coupon rate means that bondholders will receive 5% x $1,000 face value = $50 consistently.
• The face value, otherwise called par value, is the amount paid to a bondholder at the maturity date, given that the issuer doesn't default or call the bond early.
• The date of maturity for the investment is the day the bond develops and the issuer pays the bondholder the face value of the investment.
• The yield to maturity (YTM) of the bond is an estimate of what an investor will receive assuming holding the bond to its maturity date.
• The justification behind issuance of the debt security, like the construction of another bridge or to raise revenue for schools
• The name of the bank or dealer offering the bond

Features

• The electronic blue rundown incorporates data, for example, the name of the bond giving authority, CUSIP, par value, coupon rate, and YTM.
• The blue rundown is a daily listing of bonds right now available to be purchased by banks and dealers who address the offerings.
• Two primary sorts of municipal bonds that would show up on a blue rundown are general obligation and revenue bonds.