It does not make sense for the Municipal Securities Rulemaking Board to invest resources in building a proposed centralized system for the collection and dissemination of critical market information from auction-rate securities because the market is dying, the Regional Bond Dealers Association told the MSRB in a comment letter yesterday.

Though the system is a "reasonable response" to the lack of transparency in the municipal auction-rate securities, and would have been a useful tool before the auction-rate market turmoil began earlier this year, its utility has essentially vanished as issuers and investors have lost interest in the market, the RBDA said, adding, that it is increasingly unlikely they will return. Enhanced transparency will not save the auction-rate sector, the regional dealer group said.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.