Bond Market Association
Encyclopedia
The Bond Market Association (former name: Public Securities Association) was the international trade association
Trade association
A trade association, also known as an industry trade group, business association or sector association, is an organization founded and funded by businesses that operate in a specific industry...

 for the bond market industry. It had headquarters in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

, 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
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

. 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
Securities Industry Association
The Securities Industry Association was an association of firms and people who handle securities . In 2006 it merged with the Bond Market Association to form the Securities Industry and Financial Markets Association....

 to form the Securities Industry and Financial Markets Association
Securities Industry and Financial Markets Association
The Securities Industry and Financial Markets Association is a leading securities industry trade group representing securities firms, banks, and asset management companies in the U.S. and Hong Kong. SIFMA was formed on November 1, 2006, from the merger of The Bond Market Association and the...

.

Subprime Mortgage Role

The BMA marketed CMO products. 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.

External links

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