Tax reform proposals from the House and Senate had a significant impact on the municipal bond market this past week. Generic benchmarks moved anywhere from 5 to 15 basis points into lower yields as the market responded to the push to reform the tax code for the first time in more than 40 years.
Most impactful was a suggestion by the Administration to remove the exemption on advance refundings, which represented about one-third of the entire market issuance of last year. Further, the alternative minimum tax and private activity bonds are on the chopping block.
This Market and Policy commentary is brought to you by Court Street Group. For a full copy of the report, click here.
Posted 11/10/2017 by George Friedlander
Neighborly Insights