Bond Market Association
The Bond Market Association (former name: Public Securities Association) was the international trade association for the bond market industry. It had headquarters in New York City, and offices in London and Washington D.C. Twenty per cent of the membership was located outside of the US, while 70 per cent was located outside New York City. The BMA acted as a global voice for bond issuers and traders, and co-ordinated with governments, corporations, and investors. It also had a code of ethics, which required members to behave in a fashion of fairness.
On November 1, 2006, The Bond Market Association merged with the Securities Industry Association to form the Securities Industry and Financial Markets Association.
Subprime Mortgage Role
The BMA marketed informational publications on the subject of CMO's. In their document "An Investors Guide to Collateralized Mortgage Obligations CMO's", copyright 2001, 1999 they failed to disclose the risk of mortgage default. Contained in this document is the phrase "..CMO's...also contain certain risks, which are detailed in this brochure.". Mortgage default is not mentioned in the document. The document instead focused on the safety of CMO's, with chapters such as "The High Credit Quality of CMO's", and others. The only real risk mentioned in the document was "prepayment risk", which would not undermine the existence of a CMO. The only risk mentioned in investing in CMO's is the potential to lose some expected profit. Refer to : An Investors's Guide to Collaterlized Mortgage Obligations, CMO's, copyright 2001, 1999, but most of these copies have been altered after the crisis.
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