Issuer Credit Analysis and Due Diligence

Municipal advisors need to understand the issuer they are advising, not just the product being proposed. That is why Series 50 includes a separate credit-analysis and due-diligence chapter focused on issuer finances, financial statements, client information, and warning signs of distress.

Read this chapter as the issuer-understanding layer of the exam. The strongest answers come from connecting the issuer’s financial condition, governance, and operating risks to the financing advice being given.

In this section

• Relevant Financial Information
  Learn how Series 50 tests issuer financial review, budget trends, tax-base strength, governance constraints, and credit-relevant operating data.
• Components of Financial Statements
  Review the financial-statement concepts tested on Series 50, including governmental statements, fund accounting, audits, and interpretation of issuer reporting.
• Due Diligence and Knowing the Client
  Study municipal advisor due diligence, issuer objectives, documentation review, decision authority, and client-understanding requirements on Series 50.
• Distressed Events
  Review distress triggers, default warning signs, covenant stress, restructuring risk, and market-access consequences tested on Series 50.