SEC.gov | SEC Issues Investor Bulletin to Help Investors Assess Municipal Bond Credit Risk
The SEC issued a 2012 Investor Bulletin to educate investors on assessing municipal bond credit risk, urging independent due diligence beyond credit ratings, with no fraud allegations, charges, or penalties involved.
On December 26, 2012, the SEC released an Investor Bulletin to help municipal bond purchasers evaluate credit risk by considering factors such as the issuer’s financial condition, bond type, and sources of repayment. The bulletin explicitly advised investors not to rely solely on credit ratings or labels like 'general obligation' or 'revenue' bond, and directed them to additional resources for informed decision-making. No fraud, enforcement action, accused parties, or financial penalties were associated with this advisory document—it was purely an educational initiative by multiple SEC divisions.
On December 26, 2012, the U.S. Securities and Exchange Commission (SEC) issued an Investor Bulletin aimed at helping individual investors better understand and assess the credit risk of municipal bonds. The bulletin, developed collaboratively by the Office of Investor Education and Advocacy, Division of Enforcement, Office of Credit Ratings, Office of Municipal Securities, Division of Trading and Markets, and Division of Corporation Finance, outlined key considerations such as the issuer’s financial health, the purpose of the financing, and the sources of funds for principal and interest payments. It strongly cautioned investors against relying exclusively on credit ratings or simplistic bond labels like 'general obligation' or 'revenue' bond, emphasizing the need for independent research. SEC Chairman Elisse Walter urged investors to gather comprehensive information before investing their hard-earned money. The bulletin was the 23rd such publication issued by the SEC in 2012 and was made available on investor.gov, the agency’s dedicated site for individual investors. No fraud, misconduct, enforcement actions, charges, or financial penalties were associated with this bulletin—it was purely an educational and preventive measure. This initiative reflected the SEC’s broader commitment to enhancing transparency and investor protection in the municipal securities market without targeting any specific entity or individual.
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- person elisse walter
- person investor bulletin
- person press release
- agency sec chairman
- agency Securities and Exchange Commission
- SEC issued Investor Bulletin to help purchasers of municipal bonds assess credit risks
- SEC issued 23rd bulletin in 2012
- Elisse Walter is SEC Chairman
- Investor Bulletin prepared by Office of Investor Education and Advocacy, Division of Enforcement, Office of Credit Ratings, Office of Municipal Securities, Division of Trading and Markets, Division of Corporation Finance
- Bulletin available on www.investor.gov
- Press Release issued on December 26, 2012
Skip to search field Skip to main content <iframe src="https://www.googletagmanager.com/ns.html?id=GTM-TD3BKV" height="0" width="0" style="display:none;visibility:hidden"></iframe> An official website of the United States government Here’s how you know Here’s how you know Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock (LockA locked padlock) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. SEC homepage Menu Newsroom | Investors Small Businesses Whistleblowers Search SEC.gov & EDGAR Search More in this Section Press Release SEC Issues Investor Bulletin to Help Investors Assess Municipal Bond Credit Risk For Immediate Release 2012-279 Washington, D.C., Dec. 26, 2012 — The Securities and Exchange Commission today issued an Investor Bulletin to help purchasers of municipal bonds better assess the bonds’ credit risks. The bulletin provides several factors for investors to consider including the type of the bond, the purpose and nature of the financing, the overall financial condition of the issuer, and the sources of funds to pay both principal and interest. The bulletin also urges investors to undertake their own independent review of municipal bonds’ credit risk and not rely solely on a credit rating or a short-hand label such as “general obligation” or “revenue” bond when deciding whether to purchase a municipal bond. “Investors should gather as much relevant information as they can before spending their hard-earned dollars on any investment,” said SEC Chairman Elisse Walter. “While I will continue to push for enhanced and more timely disclosure by those who issue municipal securities, investors should continue to learn all they can before purchasing them.” The bulletin also provides a list of additional resources where investors can find more information on municipal bonds. The bulletin was prepared by an intra-agency group including the Office of Investor Education and Advocacy, Division of Enforcement, Office of Credit Ratings, Office of Municipal Securities, Division of Trading and Markets, and the Division of Corporation Finance. The bulletin is the 23rd issued this year by the agency. They are available on www.investor.gov — an SEC website designed for individual investors. ### Last Reviewed or Updated: July 28, 2014 Resources Municipal Bonds: Understanding Credit Risk Return to top SEC homepage Stay connected. Sign up for email updates. Your email address Sign Up X Facebook Instagram RSS YouTube Email Updates
Skip to search field Skip to main content <iframe src="https://www.googletagmanager.com/ns.html?id=GTM-TD3BKV" height="0" width="0" style="display:none;visibility:hidden"></iframe> An official website of the United States government Here’s how you know Here’s how you know Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock (LockA locked padlock) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. SEC homepage Menu Newsroom | Investors Small Businesses Whistleblowers Search SEC.gov & EDGAR Search More in this Section Press Release SEC Issues Investor Bulletin to Help Investors Assess Municipal Bond Credit Risk For Immediate Release 2012-279 Washington, D.C., Dec. 26, 2012 — The Securities and Exchange Commission today issued an Investor Bulletin to help purchasers of municipal bonds better assess the bonds’ credit risks. The bulletin provides several factors for investors to consider including the type of the bond, the purpose and nature of the financing, the overall financial condition of the issuer, and the sources of funds to pay both principal and interest. The bulletin also urges investors to undertake their own independent review of municipal bonds’ credit risk and not rely solely on a credit rating or a short-hand label such as “general obligation” or “revenue” bond when deciding whether to purchase a municipal bond. “Investors should gather as much relevant information as they can before spending their hard-earned dollars on any investment,” said SEC Chairman Elisse Walter. “While I will continue to push for enhanced and more timely disclosure by those who issue municipal securities, investors should continue to learn all they can before purchasing them.” The bulletin also provides a list of additional resources where investors can find more information on municipal bonds. The bulletin was prepared by an intra-agency group including the Office of Investor Education and Advocacy, Division of Enforcement, Office of Credit Ratings, Office of Municipal Securities, Division of Trading and Markets, and the Division of Corporation Finance. The bulletin is the 23rd issued this year by the agency. They are available on www.investor.gov — an SEC website designed for individual investors. ### Last Reviewed or Updated: July 28, 2014 Resources Municipal Bonds: Understanding Credit Risk Return to top SEC homepage Stay connected. Sign up for email updates. Your email address Sign Up X Facebook Instagram RSS YouTube Email Updates