Muni Commentary

It started with the SEC’s MCDC initiative and Cease and Desist Orders, then it was the resulting enhanced scrutiny of underwriters and now it’s amendments to Rule 15c2-12.  Each has further emphasized the importance of ensuring a complete understanding and management of disclosure obligations and having comprehensive polices and procedures. 

The amendments to Rule 15c2-12 have refocused the spotlight on issuers and their policies, procedures and controls as well as their filing history and ongoing disclosure management.  Our full article (link below) highlights what the market has learned since the MCDC initiative, discusses the Rule 15c2-12 amendments and identifies several resources for your consideration.

According to the DIVER Geo Scores from Lumesis, the employment situation continues to be the top story across all States.  This month, we take a closer look at unemployment and labor force participation as well as touch on foreclosures.

DIVER Geo Scores are designed to quickly communicate the overall economic health of a selected geographic area on a scale of 0 to 10. The Geo Score reflects the relative economic well-being of the location and is available for all States, counties, and approximately 350 of the largest cities. Calculations are released monthly and are based on multiple, meaningful economic and demographic data from the employment, income and housing categories.

This week we bring you the July 2018 DIVER Geo Scores.  With the economy seemingly on sound footing, we highlight States, counties and cities with lower Geo Scores and, importantly, those trending lower over the past year.  In the coming weeks, we will revisit import and export sensitive States taking a closer look at trading partners and potential winners and losers from the ongoing tariff threats.

With the recent Supreme Court decision overturning the Professional and Amateur Sports Betting Act of 1992, many state governments are changing their laws to allow for legalized betting on professional sports leagues. While sports’ betting was already legal in Nevada, Delaware and New Jersey have now quickly passed and implemented legislation to legalize sports betting. As many as 16 other states including New York, West Virginia, and Mississippi are also working on passing legislation to legalize sports betting.

This week we bring you the May 2018 DIVER Geo Scores which highlight, in many instances, the improving employment picture. We will then look at the newly released 2017 census data and corresponding Geo Score trends.

 DIVER Geo Scores are designed to quickly communicate the overall economic health of a selected geographic area on a scale of 0 to 10. The Geo Score reflects the relative economic well-being of the location and is available for all States, counties, and approximately 350 of the largest cities. Calculations are released monthly and are based on multiple, meaningful economic data and demographic data from the employment, income and housing categories. More information on Lumesis data and solutions can be found by visiting Our Solutions.

While the SEC’s MCDC initiative concluded in 2016, its shadow continues to lurk over the municipal bond market.  For those issuers that have come to market since the SEC issued Cease and Desist Orders (“Orders”), you undoubtedly have experienced increased scrutiny of your material event and continuing disclosure filings.  The Orders and MCDC have caused many issuers to reassess their policies, procedures and controls around filing obligations, filing history and disclosure management prospectively.  This article will highlight some of what the market has learned from, and since, the MCDC initiative and how issuers have responded.

Amazon recently announced that it has whittled the list of contender locations for its second headquarters (HQ2) from 238 down to 20. Stamford, CT (home to Lumesis) sent a proposal, but unfortunately did not make the cut. That got us thinking that we might be able to provide Amazon some guidance based on the wealth of data we have on hand. Looking at 19 of the 20 locations (we do not have comparable data for the lone Canadian city, Toronto), below we use a variety of metrics that we believe may be important to Amazon in their decision-making process.

 This week we bring you the December 2017 DIVER Geo Scores and, while others are trying to predict new issuance for 2018, we are coming out with our selections of the two final teams and the winner of Super Bowl LII. More on that in a bit. In addition to presenting the locations with the greatest moves year on year, we also present the top and bottom Geo Scores for States, counties and cities for December.

DIVER Geo Scores are designed to quickly communicate the overall economic health of a selected geographic area on a scale of 0 to 10. The Geo Score reflects the relative economic well-being of the location and is available for all States, counties, and approximately 350 of the largest cities. Calculations are released monthly and are based on multiple, meaningful economic and demographic data from the employment, income and housing categories.

This week we bring you the November 2017 DIVER Geo Scores. In addition to presenting the locations with the greatest moves year on year, we also present the top and bottom Geo Scores for States, counties and cities for November.

DIVER Geo Scores are designed to quickly communicate the overall economic health of a selected geographic area on a scale of 0 to 10. The Geo Score reflects the relative economic well-being of the location and is available for all States, counties, and approximately 350 of the largest cities. Calculations are released monthly and are based on multiple, meaningful economic and demographic data from the employment, income and housing categories.

 This week we bring you the October 2017 DIVER Geo Scores. In addition to presenting the locations with the greatest moves year on year, we also present the top and bottom Geo Scores for States, counties and cities for October. This is a follow-on from the new format presented last month which  was positively received.

 DIVER Geo Scores are designed to quickly communicate the overall economic health of a selected geographic area on a scale of 0 to 10. The Geo Score reflects the relative economic well-being of the location and is available for all States, counties, and approximately 350 of the largest cities. Calculations are released monthly and are based on multiple, meaningful economic and demographic data from the employment, income and housing categories.