Bond Brokers

Municipal bond brokers occupy a specific niche in the financial industry - they only work for municipal bond dealers and the banks that represent those dealers. Essentially, they are acting as brokers for the dealers that the bond issuer hired as part of their financial team.

Dealers that are hired by the issuer will sometimes subcontract their work out to bond brokers, because of their ability to broker better deals. Dealers may have their brokers seek out bids from other dealers, an operation known as the bid-wanted business. They may also have their brokers seek out deals for them for particular bonds or in specific industries in which they want to invest.