Worst Municipal Bond Market Spreads for 2000

MunicipalBonds.com today releases its study revealing the Worst Spreads in the calendar year 2000.

The study is limited by Federal restrictions to "actively traded" Municipal Bonds: "actively traded" bonds are those bonds that traded at least four times in one trading day.

Previously, Municipal Bonds released studies of the Worst Spreads of 2001, Worst Spreads of Q1/2002 and Worst Spreads of Q2/2002.

Our purpose in going back in time is to clearly show that wide and potentially illegal same day bid/offer market spreads of actively traded Municipal Bonds have always existed. MunicipalBonds.com vigorously defends its work against anyone claiming the shockingly excessive spreads are errors, or aberrations or one-time-only events.

The Congressionally-mandated Municipal Securities Rulemaking Board (MSRB) was forced to collect trade information beginning in 1994. If we were allowed access to this information, it is our opinion that we would uncover equally outragous spreads in each of the years between 1994 and 1999.

Fair Pricing
With this continued proof of unfair and inefficient markets within the Municipal Bond industry, MunicipalBonds.com will continue to advocate the idea of "fair pricing" in the Municipal Bond markets, and will develop a system of "State specific" Municipal Bond Market Makers. Our Red Flag reports and Worst Spread studies make it apparent that something must be done. The industry's "fair and reasonable" rule has not, is not and will not be acceptable.

In addition, MunicipalBonds.com continues to demand:
• all Municipal Bond trades be reported next day
• dealer identifiers be attached to all trades
• mistakes in price reporting, if any, be publicly released in a dedicated mistake report

Background:
MunicipalBonds.com is a public service information site dedicated to 1) publicizing and actualizing price transparency and fair pricing in the Municipal Bond markets, as well as 2) advocating and actualizing fair disclosure of Municipal Bond disclosure information--hopefully through development of the long called for "centralized database."

Contact: Kevin Olson
Company: MunicipalBonds.com
Phone: 415-922-7870
Email: Kevin@MunicipalBonds.com
URL: http://www.municipalbonds.com