Opinion, Not Fact
The Thomson Municipal Market Data benchmark AAA curve should be treated by investors as an opinion on the value of a top-grade tax-exempt bond, according to Robert Nelson, a managing analyst who works on the Municipal Market Monitor, or TM3. which produces the benchmark indexes. “One of the important distinctions to make about our data, and one that our customer base knows well, is we are putting forth an opinion of AAA valuation into the marketplace,” Nelson said at a Securities Industry and Financial Markets Association conference. “We have never made a guarantee that our curve represents where a given bond or particular CUSIP may trade day in and day out.” Removing the subjectivity is a “worthy pursuit” and is something that the company has researched, he said.
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