One of the largest buyers of municipal derivatives has informed the market he will stop buying such products because underwriters are not providing adequate secondary market support or accurate pricing information.

Dave Johnson, a portfolio manager at Van Kampen Merritt Investment Advisory Corp., sent a letter this week to Wall Street firms informing them of his decision. The market problems Johnson raised led other portfolio managers to question the accuracy of widely reported share prices for mutual funds. Johnson did not address this problem in his letter, the sources said.

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