19 Dec COTW: Muni Issuance Ramps Into Year-End, Then Drops
The chart below can be downloaded here.
Provisions in the proposed tax bill remove the tax-exempt status for two significant segments of the municipal bond market – advance refunding and private activity bonds. In the short term, this change is creating a flurry of issuance and price volatility. Going forward, at least 15% of issuance would be permanently taken out of the market, providing a positive backdrop for municipal bonds.
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