In municipal finance, an underwriter is a financial institution (typically an investment bank or dealer) that helps municipalities issue bonds by purchasing the bonds from the municipality and reselling them to investors. Underwriters assess market conditions, advise on bond structure and timing, price the bonds, and bear the risk of selling the issue. Underwriting fees compensate for these services and risks. Competitive underwriting involves multiple firms bidding while negotiated underwriting involves working with selected firms. Underwriters' reputations and distribution networks affect the prices municipalities receive and the investor base reached. The underwriting relationship is important for municipalities accessing capital markets, particularly for large or complex debt issues requiring broad market distribution.