For some time now, I have been critical of this regional public finance authority in Wisconsin for taking on the role of voluntary issuer of U. S. bonds. I don’t know what his motivation was for taking such a vital role in the municipal bond market. , however, proism and experience are not what comes to mind. They have no committed professional staff and the delight of their board members does not show specific competence to evaluate the links they approve. nothing more than what the MSRB receives and publishes in EMMA, then they would have little or no substance to evaluate.
I don’t know how many of those non-government bond issues have passed, but I do know that so far, some 23 problems totaling $1. 9 billion have defaulted or are in trouble, 19 of which will occur in 2020-2021. No other issuer, regardless of state, does not even come close to this number, in fact, in this period, I recorded thirteen0 problems/defaults of $9 billion in debt, so this small regional authority alone accounts for 14. 6% of the number of problems. in difficulty or in arrears (or 20. 5% of the dollar amount) during the last thirteen months.
Most of those flaws are in the domain of retirement and health care, a type of legal liability that has traditionally had the worst history of defaults. A more detailed explanation of why a deeper examination. A not unusual detail of Wisconsin’s legal responsibilities is that there is little or no information in terms of audited monetary statements or official statements. We know that audited monetary disclosure was not a requirement of the authority. Their online page advertises their and does not intend to supply anything other than a rubber stamp.
I sense that they have accepted this authority at the national level at the request of a monetary institution, only 4 provinces and a people who made a decision had a vocation, in addition to the abuses we see here, there is a massive violation of the rights of each state to the issuance of debt bonds for a transfer within their borders. There are also limits on the volume of tax-exempt problems that constitute a fee that a state is entitled to allocate.
There is also a duty to link buyers who show great confidence in the municipal market despite the fraud and abuse we have noticed over the years. It is for those and other reasons that the MSRB, sec, congress and state securities regulators are facing this problem, starting with the state of Wisconsin.
I am a former Forbes columnist, investor and editor of the Forbes/Lehmann Municipal Debt Report. As a lifetime investor in postage stamps, I have