Send comments to Kevin@MunicipalBonds.com

Intro

The purpose of this press release is to introduce MunicipalBonds.com to the Municipal Bond industry and request comments on the idea of a centralized database at MunicipalBonds.com.

MunicipalBonds.com has not launched nor made itself public. There has been no press release, publicity or announcement to the public.

The prototypes currently on MunicipalBonds.com are examples for the Municipal Bond industry to better understand the idea and to help facilitate comment. The ten Issuers used for prototype models were not chosen randomly. California (State of) was included later. Currently, only five link to their own "Issuer Home Page."

Centralized Database

The idea of and need for a centralized database of Municipal Bond continuing disclosure information is not new. It has long been called for and studied.

MunicipalBonds.com intends to be that centralized database. MunicipalBonds.com is not a NRMSIR. Quite the opposite, MunicipalBonds.com is the antithesis of the NRMSIR system. As you are all aware, Underwriters are responsible and/or liable for the delivery of disclosure documents to the NRMSIRs. From that point, the NRMSIRs sell this disclosure to the public.

The idea behind MunicipalBonds.com has Issuers delivering disclosure to MunicipalBonds.com. From there, the ethic for MunicipalBonds.com is to offer and provide this disclosure to the public for free.

Initial Issuer Reaction

I have made calls to various Issuers to ask their interest. To date, it is best to describe the responses as abrupt and contradictory. For example, I called an Issuer to introduce MunicipalBonds.com as a portal of disclosure information to help individual investors. I was greeted with praise and claims of "I support this idea" and "want do whatever I can to improve continuing disclosure." There was excitement. I tried to intercede and was finally able to explain "MunicipalBonds.com was the opposite of a NRMSIR. Yes, you can post information here and, yes, you may have your own Issuer Home Page, but you have to pay something and fund the page." The conversation stopped and there was a silence. I prepared myself. It was apparent there was no longer a happy Muni camaraderie. There was only the blurt of a shocked, upset and insulted; "NO." I reminded the official that "you just said you liked this idea and would do anything to support it." But things had changed.

I apologize to any Issuer who misunderstood. Someone has to pay for this. I have just a very basic site constructed. Development requires funding. My question to the Issuer community is who should pay for the development of a centralized database? Or even a centralized index?

None of the Issuers I spoke with even considered a price or how cheap this could be on a per-Issuer basis. Money was not the issue. But nonetheless I will ask what a fair price and/or fee should be for a page at MunicipalBonds.com?

I did encounter arguments that Issuers already had a web site. My response to this is that MunicipalBonds.com does not deter from your own sites. Acting as a satellite, MunicipalBonds.com would actually enhance and assist your web sites, and would turn out to be an important part of your investor relations efforts.

Another consideration is that the vast majority of Issuers do not have their own sites. Large Issuers can have theirs, but it is important that large Issuers support the development of MunicipalBonds.com as a centralized database to make it feasible for medium- and small-sized Issuers to have an Issuer Home Page and some type of web presence. There has to be a bigger picture here.

In consideration of this bigger picture, I would ask Issuers your opinion of the value of a centralized database? What are your opinions of the value of MunicipalBonds.com?

Counterproductive Issuer Support: "I support this idea, but not for us" (and Message to Texas Municipalities, Texas State Comptroller Carole Rylander, Texas BRB, et al)

Eventually I would have liked to call and discuss MunicipalBonds.com with Texas. But I need to be honest and disclose something. On a call with a New York official the whole scenario basically happened as earlier described. When money was mentioned, initial support for MunicipalBonds.com turned to opposition. But then it took an unusual turn back to support. The suggestion was that I call Texas. "They need something like this - all those school districts." I thanked the official for the renewed support. I then reminded the official that it was Texas that had the SID and, based on State income tax and borrowing needs, perhaps it was New York that needed Texas investors.

This sort of "I support the idea, but not me" thing is counterproductive. If you support the idea for others, then you must support the idea for yourself.

With this having happened, it is awkward to request comment from Texas. But I will specifically ask Texas State Comptroller Carole Rylander, the Texas BRB and all Texas Municipal Treasurers if you will set a higher standard and be part of and/or help develop MunicipalBonds.com?

Business or Non-Profit

On another big picture, I have always thought that MunicipalBonds.com should be a non-profit overseen by Municipal Treasurers and/or Issuers. It just seems the proper thing to do. In early 2000, I tried to offer MunicipalBonds.com to State Treasurers. I connected with the States of New York and California to pitch and test the idea. For New York, I sent emails to Bruce Balle and John Hull, as well as a Tim Dickert. That's as far as it went. California came back to me and at first showed interest. I was invited to Sacramento and met with Lai Louie and Donna Lucas. It's just my opinion, but it sure seemed like they wanted to do something. The idea progressed upstairs to Treasurer Angelides and his political/marketing people; and that was the end of that. Lai explained the Treasurer wanted to focus on his own web site.

Most recently, when speaking with one Issuer I suggested MunicipalBonds.com be a national project for Issuers and/or Treasurers. The official honestly cried, "I would have no idea where to begin."

What I am doing now is perhaps the beginning that is needed. Furthermore, if this is an idea that Issuers and/or Municipal Treasurers support, I am willing to make this your project. Is there any interest out there? Is there a State Treasurer who will step up?

If not a non-profit, then MunicipalBonds.com is a business. In turn, I would invite any interested Municipal information vendor, especially the ratings agencies, to be part of MunicipalBonds.com. If you think this is presumptuous, then I apologize. The business model is relatively simple. However, you should know that Issuers, as the client base, are currently best described as hostile to the idea. You risk losing existing business by supporting me. It's up to you.

Uniform Fair Disclosure Page

Apart from questions on support and structure, the more important question I request comment on is what should an "Issuer Home Page" look like? Basically, what I'm asking is what should a template Issuer Home Page look like.

The outline and general layout of the Issuer Home Pages you see were actually developed in 1994. Since then there have been studies of what disclosure should be, and even what it should be by sector. What I list is very basic. It is a good start. What is wrong with the proposed template page and outline? What could be changed/added to improve the page? I look forward to any constructive input.

"Super Index"

In sum, the idea of a centralized database is something that you, as an industry, have called for and studied. I am presenting a solution. My solution has already hit opposition. Though a centralized database is very possible and has always been my goal, I am willing to work with what is possible for the Muni market. I even have a back-up suggestion.

Most recently and presumably for reasons of feasibility, the call has been for a centralized "index." If we can only hope for a centralized index, my idea is to meet somewhere in the middle and have a "Super Index." This "Super Index" would have some elements of introductory information similar to what is on my prototype Issuer Home Pages-because it needs to be interesting. For continuing disclosure information, the user could link to the various sources providing this information.

Message to Micah Green and the Bond Market Association

I have developed a "Closing Prices" section on MunicipalBonds.com. I would like to expand it and have some different and great ideas on how to make this available data more user-friendly and applicable. With all respect to your own efforts, I ask that you sponsor my closing prices section of MunicipalBonds.com. It would be better for a non-competitive element of our industry to sponsor my pricing database to ensure everyone remains comfortable.

In Conclusion

There it is Municipal Bond industry. MunicipalBonds.com is the definitive name that describes our business. Don't blame me for the internet and don't blame me for having this domain name. I've presented options for its positive use. I hope you will want to do something.

 Please forward comments to:

The Bond Buyer
Kevin@MunicipalBonds.com

 PRESS RELEASE delivered to The Bond Buyer 7/5/01
 From MunicipalBonds.com
 Kevin O. |  (415)922-7870
 Kevin@MunicipalBonds.com