It’s a glorious spring day in America and everything continues to bounce along. A little progress here and some fall back there. Oh and that unpleasant negative ratings watch on United States debt from Standard & Poor’s. Yeah that is not good. Welcome to a new week in muniland.
Increasing the muni investor pool:
Marketwatch has an article which frames the proposed Wyden and Coates federal legislation for muni tax-exemption as having the effect of shrinking the investor pool.
I think this is a good frame to think about tax changes within. Whether they broaden the pool of investors for municipal debt or narrow it.
Build America bonds helped the muni market because they attracted new investors.