Spotlight on Transparency: Secondary Market Disclosure Hot Topics June 16, 2020
SEC Rule 15c2-12 Continuing Disclosures • Since February 2019, there have been a total of 63,454 event-based continuing disclosures filed with the MSRB Bond Calls Account for 76% of Event Remaining Notices Event Notices Account for 24% Municipal Securities Rulemaking Board 2 2
Event 15 & 16 Continuing Disclosures • 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 Municipal Securities Rulemaking Board 3 3
Event 15 Notices Total Event Notices Filed with MSRB, Excluding Bond Calls 600 Defeasance 500 Rating Change 400 300 200 Event 15 100 0 Mar-19 Apr-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Mar-20 Apr-20 Feb-19 May-19 Feb-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 Municipal Securities Rulemaking Board 4 4
Covid-19 Related Disclosures • 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 Municipal Securities Rulemaking Board 5 5
Covid-19 Related Disclosures Municipal Securities Rulemaking Board 6 6
Spotlight on Transparency: Secondary Market Disclosure Hot Topics June 16, 2020
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