ALEXANDRIA, Va.--()--The Municipal Securities Rulemaking Board (MSRB) today provided new educational resources to help investors and state and local governments understand the use of municipal market indices, yield curves and benchmarks.
“We look forward to continuing to work with providers of market indices, yield curves and benchmarks to promote transparency in the municipal market.”
The MSRB’s educational resource on municipal market indices, yield curves and benchmarks provides an overview of the types of indicators used to estimate the general level of municipal bond yields. This resource briefly describes the methodologies used to create the most commonly used indices, benchmarks and yield curves in the municipal market.
The MSRB also is providing an introduction to the London Interbank Offered Rate (LIBOR) and its relevance for the municipal market, and provides guidance for state and local governments seeking to evaluate transactions with structures based on LIBOR.
“In the wake of allegations of manipulation in the LIBOR rate-setting process, the MSRB is using its unique position in the market to enhance understanding of the methodologies, mechanics and functions of municipal market indices,” said MSRB Executive Director Lynnette Kelly. “We look forward to continuing to work with providers of market indices, yield curves and benchmarks to promote transparency in the municipal market.”
The Municipal Securities Rulemaking Board (MSRB) protects investors, issuers of municipal securities and entities whose credit stands behind municipal securities, and public pension plans by promoting a fair and efficient municipal market. The MSRB fulfills this mission by regulating securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB promotes disclosure and market transparency through its Electronic Municipal Market Access (EMMA) website, provides education and conducts extensive outreach. The MSRB has operated under Congressional mandate with oversight by the Securities and Exchange Commission since 1975.