Season 9, Episode 14 

This week “Know More. Risk Better.” offers a focused analysis on the SEC’s potential shift from quarterly to semiannual reporting, highlighting legal, covenant, and credit market impacts as the change is considered for US issuers. The panel begins with an overview of the SEC rulemaking process and regulatory drivers, then explores practical and legal challenges, such as disclosure consistency, litigation risks, and the continued role of anti-fraud obligations. Covenant experts review implications for bond and loan agreements, noting that most public company covenants defer to SEC requirements, while sponsor and private deals often maintain stricter quarterly reporting regardless of regulatory changes.  

The discussion also examines market dynamics, including investor pressure for timely updates, impacts on spreads and volatility, and possible changes in management communication strategies. The team assesses how reduced reporting frequency may influence market structure, sell-side research, liquidity, and ETF rebalancing, emphasizing the importance of best practices for consistent material event disclosures. Panelists conclude that while the rule change may require a gradual adjustment period, actual market impacts will depend on issuer fundamentals, covenant language, and evolving investor expectations.