[VIEWS] Triet Nguyen on the “Rieger Report”

Triet Nguyen visits with JR Rieger to talk about municipal bonds, the impact of COVID-19, and the critical need for disclosure transparency.

Triet Nguyen on the Rieger Report discusses municipal bonds, the impact of COVID-19, and vital secondary market disclosure. Some key insights from the discussion:

  • State and local governments have endured a financial shock that is in many ways worse than the 2008-09 crisis. In light of this, DPC DATA’s mission to provide the municipal bond market with disclosure transparency is more critical than ever.
  • Although issuers at the front lines of Healthcare and Transportation are a source of worry, he was most concerned about Dedicated Tax issues which are secured by only one revenue source such as a Sales Tax or Local Income Tax.
  • In addition, state and local governments are now struggling with rising costs and diminished revenues. This can turn into a negative feedback loop over the next months, if not years, where states readjust their budgets, which creates layoffs and unemployment and then revenue collections get slammed again.
  • DPC had noticed an improving trend in disclosure compliance over the last 5 years, based on our research. Of course, all this has “gone out the window” with the current crisis.
  • We’re starting to see an onslaught of disclosure documents from issuers trying to warn investors about the potential for financial impact on credit worthiness. There are no guidelines for how issuers on how to file COVID-19 related documents. They’re putting them in this huge “other” category. DPC analysts are going through the actual documents and reclassifying them based on what they actually say regarding COVID-19.
  • DPC is also working on some data and analytical tools to help investors manage risk in their portfolios. This is key for those with hundreds of thousands of line items. Triet says, “We go by the old saying, ‘You should always know what you own’ so we want to help investors and their advisors figure out what they actually own.”

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