Goldman Sachs Group, in collaboration with Chicago-based securities firm Incapital, plans to sell bonds issued by US states, cities and towns to individual investors.
The move will make billions of dollars of municipal bonds underwritten by Goldman, which will be available for sale by 85,000 brokers in Incapital’s distribution network of broker-dealer firms, according to The Wall Street Journal.
Under the terms of the municipal-bond partnership, Incapital will take a portion of the fee Goldman charge for underwriting municipal bonds.
This move brings Goldman closer to rivals that already have forged relationships with retail-brokerage networks to distribute their municipal bonds.