Private placements in the municipal debt market have been increasing over the last decade and have become a topic of interest for municipalities, investors, and regulators. Private placements are sold without an underwriter to relatively sophisticated investors and are typically ‘buy-to-hold’ transactions. Without an aftermarket, compared to traditional competitive or negotiated sales, there are fewer financial intermediaries and fewer regulatory disclosure requirements needed for private placements. Savings on “flotation” costs can be substantial enough to make private placements a less costly method of debt offering. Conditional on selectivity in the method of sale and relevant covariates, private placements can offer lower true interest costs and issuance costs compared to both competitive and negotiated debt offerings.