Included:
1) NEW:  Worst "Two-Trade" Spreads
2) Worst Spreads of 2002
3) Worst Spreads of 4th Quarter 2002

1) NEW:  Worst "Two-Trade" Spreads (12/03/02 to 12/31/02)

The calendar year 2002 began with the Municipal Bond industry only releasing next-day price data for "actively traded" Municipal Bonds; or those bonds that traded at least four (4) times within a specific trading day. Though all the data was there, price information for bonds that traded three (3), two (2) or one (1) time were closely guarded by the Municipal Bond industry who considered their price reporting too important to fully release to the public. The hope of price transparency in the Municipal Bond markets had therefore been effectively blocked since it was first called for and initiated back in 1994.

In 2002, MunicipalBonds.com campaigned against this unfair and unreasonable blockage and demanded more price information. Because of pressure from MunicipalBonds.com, in 2002 the industry lowered their "actively traded" definition threshold and began releasing more price information:

• On May 15, 2002, those Municipal Bonds that traded at least three (3) times were included and released.
• On December 3, 2002, those Municipal Bonds that traded at least two (2) times were included and released.

There was opposition to these changes and the release of more price data. The Bond Market Association, which represents Wall Street broker/dealers and their interests, for example, was concerned that additional releases would hurt the markets and wanted studies made. To help with whatever studies, MunicipalBonds.com has prepared and will include in its quarterly and annual price reports a new listing detailing the "Worst Spreads" of bonds that traded at least two (2) times. In less than a month (from December 3, 2002), we compiled quite a list. These trades show a customer bid side and a customer offer side. Do the spreads, therefore, better show how the Municipal Markets are unfair and unreasonable? Do they show intent?

2) Worst Spreads of 2002

As always, our annual worst spread report produced some shocking numbers. This is true even after we deleted what we considered typing errors from the three reports; three from the Worst Bid/Offer Spread Report, four from the Worst Bid-side Spreads, and ten from the Worst Offer-side Spreads.

2002 Worst Bid-side Spreads (spread between lowest/highest bid)
http://www.municipalbonds.com/redflag/report2002bid.html

2002 Worst Offer-side Spreads (spread between lowest/highest offer)
http://www.municipalbonds.com/redflag/report2002offer.html

3) Worst Spreads of 4th Quarter 2002

For those who are tracking the numbers quarterly, here are reports for the 4th Quarter 2002:

4Q/2002 Worst Bid/Offer Spreads
http://www.municipalbonds.com/redflag/report2002Q4spread.html

4Q/2002 Worst Bid-side Spreads
http://www.municipalbonds.com/redflag/report2002Q4bid.html

4Q/2002 Worst Offer-side Spreads
http://www.municipalbonds.com/redflag/report2002Q4offer.html



For questions, information, comments please contact Kevin Olson, MunicipalBonds.com. Kevin@MunicipalBonds.com (415)922-7870


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