Spotlight on Transparency: Secondary Market Disclosure Hot Topics - - PowerPoint PPT Presentation

Spotlight on Transparency: Secondary Market Disclosure Hot Topics

June 16, 2020

SEC Rule 15c2-12 Continuing Disclosures

Municipal Securities Rulemaking Board 2

• Since February 2019, there have been a total of 63,454

event-based continuing disclosures filed with the MSRB

Remaining Notices Bond Calls Account for 76% of Event Event Notices Account for 24%

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Event 15 & 16 Continuing Disclosures

Municipal Securities Rulemaking Board 3

• A total of 3,547 Event 15 and 32 Event 16 continuing

disclosure notices have been filed with the MSRB

– A random sample of approximately 100 Event 15 filings:

• 50% - entire agreement
• 30% - term sheet
• 14% - written summary
• 6% - OS or POS
• There has been a significant increase in the number of

Event 15 disclosures over the last 3 months

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Municipal Securities Rulemaking Board 4

Event 15 Notices

Total Event Notices Filed with MSRB, Excluding Bond Calls

600

Defeasance

500

Rating Change

400 300 200

Event 15

100 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 Event 7 Event 9 Event 10 Event 11 Event 12 Event 13 Event 14 Event 15 Event 16

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Covid-19 Related Disclosures

Municipal Securities Rulemaking Board 5

• Through the end of May, the MSRB has identified

approximately 7,400 disclosures that reference Covid-19

– 2,174 Primary Market Disclosures (e.g., official statement) – 5,268 Continuing Disclosures (e.g., annual financial information, event notice, voluntary disclosure)

• Examples of the types of event notices include:

– Reserve fund drawdowns – Delinquent principal/interest payments – Bankruptcy

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Covid-19 Related Disclosures

Municipal Securities Rulemaking Board 6 6

Spotlight on Transparency: Secondary Market Disclosure Hot Topics

June 16, 2020