Placement Ratio

DEFINITION of 'Placement Ratio'

A ratio that calculates the amount of bonds sold during the week as a percentage of the amount of municipal bonds that are issued during the corresponding week. Only issues of $1,000,000 par value or more are used in the calculation.

Also known as the "acceptance ratio".

Placement Ratio

BREAKING DOWN 'Placement Ratio'

The placement ratio is used by investors as an indicator of the overall situation of the municipal bond market. The higher the placement ratio, the better off the municipal bond market is. The data for bonds sold and issued during the week is compiled and published weekly by the market newspaper, "The Bond Buyer".