Improving Bondholder Communication

Abstract

The panelists represented the issuer, vendor, investor, and trustee points of view. Questions and issues posed by the moderator included whether communication today between issuers and investors in securitization transactions is usually sufficient, sometimes sufficient, or rarely sufficient; historical challenges to effective communication between issuers and investors in the securitization market; the current process for getting messages to investors; the trustee’s role as the conduit for information; how issuers have tried to deal with challenges to effective communication; issuers’ experiences in communicating critical information to end-investors; how end-investors are identified; tools that allow investors to communicate with each other; whether such communication can or should be monitored; quality and timeliness of information that investors typically receive from trustees in a securitization; inherent reasons for insufficiency of information; and information available on a transaction from independent data providers.