The Comprehensive Annual Financial Report (CAFR) is, in other words, a bond issuer’s annual audited financial statements. Securities and Exchange Commission (SEC) Rule 15c2-12 prohibits underwriters from buying municipal bonds unless issuers promise to provide continuing disclosure. Most large, frequent issuers will do so by sending these annual reports to the MSRB’s Electronic Municipal Market Access (EMMA) system for posting.
While the SEC requires corporate borrowers to file their annual audited financials within 60 to 90 days after the ends of their business years, no such time constraints are placed on municipal bond issuers. “The range in reporting time is huge among the slowest and fastest municipal bond borrowers when it comes ...