ABSTRACT
An important factor affecting the need for disclosure is the growing shift in the ownership of municipal fixed-income securities. Disclosure today presents a "snapshot" of issuer. The credit picture is fixed in time and is limited to descriptive data applying solely to the municipality, without reference to any contrasting norms. The legal environment in which the disclosure of empirical data describing municipal credit conditions occurs is not well developed or particularly clear. Case law in this area deals with broad application of disclosure rules, and the specifics of data accuracy are rarely considered. The background, selection, and experience of management, is a critical element for understanding credit quality. Debt figures vary widely by state and locality with no clear norms for analysis. A number of important variables affect these figures, including: age and status of existing infrastructure, age and growth rate of the issuing municipality, mandated services provided to its residents, and infrastructure and zoning effects on future ratables.
