For underwriters bidding on competitive new issues in the municipal bond market, AGM offers an Internet-based service to simplify the process of submitting good faith deposits. In lieu of the traditional cashier's or certified check, AGM provides a surety bond.
Through Sure-Bid, we make it easier for underwriters to bid for a municipal issue. This leads to more bids and thus may result in a lower required yield. Most states where a good faith deposit is required have authorized Sure-Bid, and all major underwriters use it.
For financial advisors, issuers and bond counsel, the time-saving Sure-Bid program is free. The only requirement is that official documents authorize use of the surety for the good faith deposit.
For underwriters, Sure-Bid saves time and money. Once registered as a subscriber, an underwriter pays a modest premium for the surety bond for each transaction on which it bids. If its bid wins, the underwriter has 24 hours to wire the good faith deposit. Should the underwriter fail to make timely delivery, AGM wires the funds on the business day after receiving a notice of non-payment. If the bid was not successful, the underwriter has been spared both the withdrawal and redeposit of good faith funds and has earned interest continuously on those funds.
The interactive Sure-Bid Calendar allows anyone to see all the issues currently eligible for Sure-Bid. After logging in, subscribers submit Sure-Bid requests by simply selecting issues on screen.
To request more information, email firstname.lastname@example.org, or call a Sure-Bid Coordinator at 888.995.8066.