Placement Ratio

AAA

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

INVESTOPEDIA EXPLAINS '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".

RELATED TERMS
  1. Par Value

    The face value of a bond. Par value for a share refers to the ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Municipals-Over-Bonds Spread - ...

    The difference in yields between a municipal bond and a Treasury ...
  4. Municipal Bond Fund

    A mutual fund that invests in municipal bonds, or "munis." Municipal ...
  5. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  6. The Bond Buyer

    The Bond Buyer is a municipal bond market daily trade publication. ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. Weighing The Tax Benefits Of Municipal ...
    Taxes

    Weighing The Tax Benefits Of Municipal ...

  3. Where can I buy government bonds?
    Investing

    Where can I buy government bonds?

  4. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center