Series 52 case studies
Series 52 · Put your knowledge to work in context.
The Series 52 - formally the Municipal Securities Representative Qualification Exam - is a qualification examination for individuals who sell, trade, or underwrite municipal securities at a FINRA member firm. It tests whether a candidate understands the instruments, the market they trade in, the new-issue process behind them, and the conduct rules that govern how they are sold. The Series 52 case studies are 5 cases and about 3,158 words.
1Water Revenue Bonds With an 18% Private Off-Taker
The City of Marston (population 180,000) plans a 42 million expansion of its water treatment plant. Staff proposes pledging net revenues from water rates, with a 1.25x rate covenant and a 1.20x additional bonds test, and no general obligation backup.
693 words, about 3 min2Bidding on an $8 Million Callable Turnpike Block
A dealer's municipal desk is asked by an institutional customer to bid on 8 million of 5.00% coupon turnpike authority bonds due 2040, rated A, first callable in 2034 at 101. Comparable A-rated toll road paper is currently offered at 4.55% for 10 years and 4.80% for 20 years.
671 words, about 3 min3Oversubscribed Book, an Affiliate Order, and a Repricing Request
A senior manager leads a four-firm syndicate on a 60 million negotiated revenue bond for a private university. The 5% scale is set at 4.10% for the 10-year and 4.40% for the 30-year, with a 0.25% takedown and 0.15% group net.
478 words, about 2 min4A Retiree, a Toll Bridge, and a Feasibility Study That Missed
A 62-year-old retiree with a 500,000 portfolio, 70% in CDs and 20% in investment-grade bonds, tells her broker she wants 'safe, tax-free income' and cannot afford principal loss. The broker proposes 150,000 of 5.25% unrated senior lien bonds for a toll bridge, 30-year final, with 1.10x base-case debt service coverage from a 2022 feasibility study projecting 6% annual traffic growth.
602 words, about 3 min5A $400 Contribution, a $150 Gift Basket, and a Pending Deal
A municipal finance banker at a dealer is the lead on a negotiated underwriting for the Cedar County Hospital District, expected to price in June. In March the banker personally contributed 400 to the re-election campaign of a county commissioner who sits ex officio on the hospital district board and votes on bond resolutions.
714 words, about 4 min