What do SEC regulations govern in relation to bonds?

The correct choice relates to the regulations established by the Securities and Exchange Commission (SEC) that specifically oversee the issuance and trading of securities, including bonds. These regulations are critical as they aim to ensure transparency and integrity in the financial markets. They require issuers to provide detailed disclosures regarding the terms of the bonds, the risks associated with investments, financial health, and other material information that potential investors need to make informed decisions.

This regulatory framework helps to protect investors by mandating that they receive accurate and complete information about securities offerings. By enforcing these rules, the SEC plays a pivotal role in maintaining market confidence, thereby facilitating fair and efficient capital markets.

In contrast, marketing strategies for bond issues focus more on the promotional aspects and do not fall under the purview of SEC regulations, as they are concerned with how bonds are marketed rather than how they are regulated. Similarly, investments in municipal funds and predictions of default rates do not directly relate to the SEC's role, as SEC guidelines do not specifically govern investment strategies or forecasts about the performance of bonds.