Buying Oregon Bonds: Step-by-Step
The State provides individual investors the opportunity to place orders to buy bonds before other institutional investors. Here is the step-by-step process.
Step 1 - Have a brokerage account
You must have an account with one of the brokerage firms participating in the bond sale (see bottom of the front page of the Preliminary Official Statement [POS]). If you have a brokerage account with one of these firms, go to Step 2.
Bonds cannot be purchased directly from the State. Therefore, if you do not have an account at one of the participating firms, you may be able to open one and purchase bonds during the early order period. Investors are encouraged to begin the new account process well in advance of the sale. Depending on the brokerage, internal new account procedures may take some time to process.
Each firm has its own requirements for opening an account. The State does not endorse any particular brokerage firm. Additionally, the State does not guarantee that any one of these firms will open an account or acquire bonds for an investor.
For a list of potential brokers, in addition to those listed on the front page of the POS, use your favorite search engine, such as Google or Bing.
Step 2 - Learn about the bonds
Read the Preliminary Official Statement to learn about the bonds currently being offered in the primary market, including their security, maturity dates, the types of projects they finance and other information you may find important to help you make an informed investment decision. This website is not an offer to sell any bonds.
On the front cover of the POS, at the bottom of the page, is a partial list of participating firms called syndicate managers. All participating firms have equal priority in receiving bonds on the first day of the offering. If your brokerage firm is not one of the Participating Firms in the current bond offering, then you may need to contact your brokerage firm to determine if they can access State of Oregon bonds in the secondary market.
Step 3 - Place your order
Contact the broker with whom you have an account to get more information about how to buy bonds during the early order period.
Step 4 - Final Official Statement
Before the purchase of a bond, it is recommended you review the POS. Upon purchase of a bond, the law requires that a final official statement (FOS) be made available to you. It is recommended that you obtain and keep a copy of the final official statement. Official statements are available in electronic format on the following Federal web site: www.emma.msrb.org