| |
Press Release: 4/17/03 11:00 AM Eastern
Worst Spreads Reports
1st Quarter 2003
Worst "Two-Trade" Spread Hits 50 Points
In its ongoing informational studies, MunicipalBonds.com releases its
Worst Spreads Reports for the 1st Quarter 2003.
The lists are based on information obtained directly from the MSRB's
next-day trade reporting program for the Municipal Markets.
Please note that the numbers shown are actual trades and prices reported
by Municipal Bond brokers and dealers to the MSRB. There has been
discussion within the industry that these wide and potentially illegal
spreads are errors. In these reports we utilize the exact numbers we get
from the MSRB.
Since the inception of Muni Market trade reporting in 1994, we have always
demanded that all trade and price information be reported next day, that
dealer identifiers be attached, and that if there are errors, a specific
and dedicated error report be provided. The only dedicated error report
the MSRB issues is restricted to Muni broker/dealers. We demand the MSRB
and Muni industry make this specific error report publicly available. We
also continue to demand that the Muni broker/dealers behind the trades and
prices be made public.
The bigger issue remains that there are so many and such wide and
potentially illegal spreads. Our focus should be on this...and what we
should do to bring about fair pricing.
Please also take notice of our "Two-Trade" report. This is our first
full-quarter look at the Worst Two-Trades because the MSRB and Muni
industry did not release two-trade info until December of 2002. Looking
at a Two-Trade and seeing a wide spread is an easier way to see intent.
Basically it could be one customer selling and another buying. Are they
flips? Do they show intent?
Worst Bid/Offer Spreads Q1/2003:
http://www.municipalbonds.com/redflag/report2003Q1.html
Worst Bid-side Spreads Q1/2003:
http://www.municipalbonds.com/redflag/report2003Q1bid.html
Worst Offer-side Spreads Q1/2003:
http://www.municipalbonds.com/redflag/report2003Q1offer.html
Worst "Two-Trade" Bid/Offer Spreads Q1/2003:
http://www.municipalbonds.com/redflag/report2003Q1two.html
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
 
|
|
