Bond Insurance Kaput, Credit Rating Agencies Not Rating: Muni Disclosures.

   The collapse of Bond Insurance Companies has taken away what was viewed as a form of Risk Management for Municipal Bonds.  This collapse has taken place at the same time that the Munis Market faces an astonishing lack of ratings by the Credit Rating Agencies which remain extant despite their well-reported failures.

    The combination of these events has spurred Disclosure Initiatives of Munis including by Regulators.  One effect in addition to increasing transparency in the Munis Market may be to increase the performance of Fiduciary Duties as well.  See Gretchen Morgenson, "Fresh Air in the Muni Market" (New York Times Nat'l ed., Sunday Business Section, Sunday, August 30, 2009).

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