SLCG Issues “Using EMMA to Assess Municipal Bond Markups”
WASHINGTON, June 10, 2013 /PRNewswire/ — Securities Litigation and Consulting Group, Inc. (“SLCG”) has issued a report on municipal bond markups authored by Geng Deng and Craig McCann. Dr. Deng is the Director of Research and Dr. McCann is Principal of SLCG.
SLCG analyzed over 14 million customer trades using data provided by the MSRB since 2005 through its EMMA portal. Dealers purchase bonds from issuers and investors and sell the bonds to other investors. Custom, practice and regulation are supposed to limit the markups dealers charge to reasonable levels. The report concludes that investors have been charged at least $10 billion in excessive markups since 2005.
Dr. Deng points out that while SLCG’s analysis of excessive markups required sophisticated programming, retail investors may be able to protect themselves from excessive markups by following SLCG’s examples and reviewing other trades in any bond they buy or sell. He points out that with a little practice investors can determine whether prices they are charged are fair.
Dr. McCann hopes the SLCG report and other studies will shed light on widespread excessive markups and will identify for low cost methods the industry and its regulators will be able to better protect investors. “While we continue to provide litigation consulting services, basic research and investor education have increasingly been our focus,” he said. Dr. McCann went on, “Our report is part of a growing literature calling for more transparency and disclosure in the municipal bond market which should benefit both investors and taxpayers.”
This study and other working papers are available at http://www.slcg.com/research.php and at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2276138.
Securities Litigation and Consulting Group, Inc. (“SLCG”) is a research and consulting firm based in the Virginia suburbs of Washington, DC. SLCG provides consulting services and expert witnesses to law firms, publicly-traded corporations, banks, brokerage firms and individuals involved in complex litigation throughout the United States. SLCG’s staff includes PhD, MA and BA level professionals with academic, industry and government experience. Its experts have testified in state and federal court and various arbitration forums.
For further information about SLCG or its research, please contact Dr. Deng at 703-890-0741 or email@example.com or Dr. McCann at 703-246-9381 or firstname.lastname@example.org or visit us at http://www.slcg.com.
SOURCE Securities Litigation and Consulting Group, Inc.