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.


ACAP has the structure and capabilities to underwrite 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 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 cheap enough for investors to buy the bonds.

Alamo Capital is recognized by the State of California’s Treasurer’s Office as a:

  • Women Business Enterprise

  • Member of the State Treaurer’s Office Small Firm Program

  • 2009-11 Underwriter Pool (Public Finance Division)

Contact Us:


To find out more about underwriting, either call our office at (855) 846-ACAP, fill out our brief contact form or email us at [email protected].