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SEC initiative should help to shed more light on securities

Q

Great article on the Ambac situation, but where does this leave the individual investor? Your article mentions “scrutinizing” the individual issuers, but that is very difficult if you are not a financial analyst by nature. I am an avid investor and a past analyst and even I have to dig through hundreds of pages just to make a judgment call on these issues and issuers.

T.C., Maryland

A

James A. Klotz responds:

Your point is well taken.

Municipal bond issuers have always been criticized for not providing adequate information regarding material events on a timely basis.

We are optimistic that a new initiative from the Securities & Exchange Commission will provide the necessary disclosures to assist us all in analyzing municipal securities.

We addressed this subject earlier this year in our commentary, Brighter Light on Munis Will Benefit Investors.

In the meantime, we would be pleased to share our research if you have any specific inquiries.

Nov 15, 2010

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