In a deal announced Wednesday, September 8, Goldman Sachs and Incapital have joined forces to offer sales of municipal bonds to the man in the street, not the man on the Street.
According to a statement by John Radtke, president of Incapital, “Our alliance with Goldman Sachs will give financial advisors at banks, RIAs, and broker-dealers access to a wide spectrum of new-issue municipal securities which previously have been difficult to access. We feel this will broaden the appeal of a very attractive asset class and provide greater diversification in distribution for municipal issuers.”
Charlie Paviolitis, vice president of the mutual bond department at Incapital, said that Goldman “will be taking advantage of the dealer-to-dealer network that Incapital put in place. We have approximately 175 broker-dealers who have done municipal bond business in the past tied into our network, and this [arrangement] allows them to access municipal bonds during the retail order period on deals in which Goldman is either senior manager or co-manager.”