Municipal Underwriting Diligence

This article, written By Gregg Bienstock, Tim Stevens and Mike Craft offers perspective regarding the importance of proper identification of the Continuing Disclosure Obligated Party(s) when conducting Municipal Underwriting diligence and a look at the issue of misclassified filings with the MSRB. Register below to download the full article.

The world of municipal bond underwriting has experienced and continues to undergo material changes. While some argue these changes were not needed or warranted, others believe better disclosure and better diligence has led to greater transparency. Many point to the Municipal Continuing Disclosure Cooperation initiative (“MCDC”) as the starting point. Others point to the SEC’s 2010 adoption of amendments to Rule 15c2-12 under the Securities Exchange Act, outcomes of SEC cases and the SEC’s March 2012 National Examination Risk Alert. Whatever the starting point, the reality is that understanding who is obligated to make required disclosures – the Continuing Disclosure Obligated Party (“CDOP”) – and the content and timing of required disclosures is critically important to accurately and efficiently conducting municipal underwriting diligence.