Reality Check

DISCLOSING MARKUPS to municipal-bond buyers is bad for them, say bond dealers. The dealers are upset about a proposed Securities & Exchange Commission rule requiring disclosure of the difference between what the firm paid for a bond and what it is selling the bond for. They argue that buyers will be more focused on the markup than on the paper's credit quality and yield. Dealers' trade associations pledge to make more pricing info available, but not the markup.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.