MSRB Provides Educational Resources on Market Indices

Date: September 27, 2012

Contact: Jennifer A. Galloway, Chief Communications Officer
             (703) 797-6600


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.

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 MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.