Glossary of Municipal Securities Terms

SWING COUPON

In the pricing of a negotiated sale of a new issue of municipal securities, the coupon rate on a selected maturity of the new issue that is adjusted (or “swings”) in order to more precisely achieve or maximize the final production for the issue. An underwriter preparing to bid on a competitive sale of a new issue also may adjust a swing coupon to more precisely achieve or maximize the final production on its bid. See: PRODUCTION.

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