When the requirement for Continuing Disclosure was finalized under Rule 15c2-12 in 1995, Urban Futures was one of the first advisors in California to begin providing secondary market continuing disclosure to its clients.
California municipalities are required to file a number of annual reports and material event notices for their bond issuances. UFI offers the following services to make sure our clients are fully compliant with their required disclosures:
- Continuing Disclosure Annual Reports (CDARs) – SEC Rule 15c2-12 mandates that each issuer must file a CDAR for each bond issue per a Continuing Disclosure Agreement with bondholders. UFI has the resources to author all analytical tables and reports in-house on the municipal issuer’s behalf.
- Dissemination Agent Services – An agent is required to act as liaison between the MSRB and the issuer in the posting and dissemination of disclosure documents including but not limited to:
- Continuing Disclosure Annual Reports
- Notices of Significant Events
- Audited Financial Statements
- Ratings Monitoring Services – it is mandatory that the municipal issuer monitor all of its bond and insurer ratings. In the event of a rating change, the issuer must post notice to EMMA within 10 business days of the rating change. UFI utilizes a Bloomberg terminal to track all ratings, real-time. When there is a ratings change, UFI drafts all required notices and posts them on EMMA on the issuer’s behalf.
- Bond Ratings & Outlook Reviews
- Periodic credit review by Standard and Poor’s (S&P), Moody’s, and Fitch for agencies’ municipal bond ratings
- Rating agency questionnaires are being sent
- Questionnaires request information about current fiscal condition of the cash-flows pledged for the bonds and the general financial health of the issuer
- Questions can range from simple to in-depth analyses of the bond(s). Addressing inquiries will require more than just email correspondence with the inquiring agency
- California Debt and Investment Advisory Commission (CDIAC) Marks – Roos Yearly Fiscal Status Report– required by the State of California for Authority Issuers, Local Obligors and for Loan Obligations. Additional reports are required if a draw on debt services reserve accounts occurs.
These reports can be tedious, complicated, and time consuming. The UFI Analytics and Compliance Group can perform the necessary analysis, reporting, and filing to ensure compliance.