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Wall Street Muni Bankers See Bonanza With Auctions Falling (1)

July 14, 2020, 6:51 PM

The turmoil that raced through the municipal-bond market earlier this year has made it easier for Wall Street underwriters to land work.

About $167 billion of the state and local government bonds sold this year were issued under so-called negotiated sales, in which banks are hired in advance to set the interest rates and line up buyers for the securities, according to data compiled by Bloomberg. That’sa 37% jump from a year ago and accounts for more than 80% of the new debt sales this year.

At the same time, the amount of bonds floated in competitive auctions has ...