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Abstract: 

The pandemic has served to accelerate changes in the municipal bond market and in assessment of credit risk. Enhanced disclosures, including voluntary disclosures, have provided more timely interim disclosures than those found in continuing disclosure agreements. Elements of risk associated with environmental, social, and governance (ESG) events and climate-related occurrences have affected the weights and measures analysts apply to risk assessment, which continues to evolve with the availability of big data. Bond allocations are being made based on buyers identifying themselves as ESG in scope, leading to questions pertaining to order period guidelines. Regulators have expressed interest in the adequacy of disclosures of such risks and actual or potential harm to investors where such disclosures are less than robust.

Keywords: Municipal bond market changes, disclosure and risk, regulators, ESG, LIBOR, cryptocurrency

Affiliations:  1: Muni Credit & Compliance Advisors LLC; 2: SEC Office of Municipal Securities; 3: Municipal Securities Rulemaking Board; 4: Government Finance Officers Association; 5: Ballard Spahr LLP.