"Placement" = the selling of a security, i.e. placing it with a cash buyer.
The municipal bond market is wide and diverse. There are a lot of local governments out there trying to raise money by selling debt securities. Lots of fire stations to be built, potholes to be filled, parks to be planted, and Ms. Plum Blossom sashes to be sewn.
Because of its size and complexity, getting a read on the overall muni market can be challenging. The placement ratio provides one potential measure of overall market situation.
The figure is calculated by dividing the amount of newly issued bonds that were sold during a period of time (usually, the ratio is looking at a week) by the amount of newly issued bonds that came to market. The figures involved are given as a dollar amount. So if $2 billion came to market and $1 billion of those got sold, the placement ratio would be 50%.
That shows how well the market is absorbing new debt issues. A small number points to a lack of demand for muni bonds. Bad news for Ms. Plum Blossom.
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Finance: What is private placement?5 Views
finance a la shmoop what is a private placement okay a placement means that a [Man discussing private placement]
company is placing its shares with some new owner in return for cash that is
it is placing ownership in return for capital so what's the most famous type
of public placement all right come on spell it come on with me now yes IPO so
if that's a public placement it's private kiss and cousin private [People in a car cuddling]
placement is almost the same thing all be it with fewer rules about disclosure
and structure and a bunch of other regulatory stuff in fact a private
placement is also called a regulation D placement...Such that
securities are not registered with the state or the SEC the way they would be
in a public offering in a public offering securities can be sold to [Group of people in public securities]
pretty much anyone who has the dough to buy the shares and is qualified...
....No restrictions or requirements
because the government's done all the filtering but in a private offering the
Securities can only be sold to what is called accredited investors that is
investors sign a piece of paper that warrants and represents that they're [Wealth verification document signed]
wealthy enough to lose all the money they're putting into this investment
like they have over a million bucks in assets and a few hundred grand a year or
more and education and all that and that they're smart enough to have known not
to do this investment in the first place should things go awry think no training [Boy riding a bike]
wheels, no railing, no ambulances or cops or firemen you're on your own here in a
private placement there baby and yeah good luck [Man sitting by a bus stop and bus arrives]