A municipal bond market task force issued a paper on Wednesday urging state and local issuers and conduit borrowers to consider voluntarily disclosing certain information about bank loans.

Bank loans — a bank’s purchase of bonds directly from an issuer or direct loans a bank makes to an issuer — have become increasingly popular as an alternative to bond financing since 2009 because they can be structured with fixed or variable rates but do not need credit enhancement, which has been hard to secure in recent years.  In addition, there are no disclosure requirements or offering documents as with municipal bonds.

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