Summary
- Declining oil prices should be of particular interest to municipal bond investors, as many U.S. state and local budgets have a substantial dependence on oil production and exploration revenue.
- The impact of lower oil prices varies from state-to-state, with states with a heavier dependence on oil revenue being affected most negatively.
- The increased consumer spending that is typically associated with a decline in oil prices may offset the decline in oil-related revenue in some states.
Seeking Alpha
By Stephanie Larosiliere, Client Portfolio Manager, Invesco
Apr. 21, 2015 5:56 PM ET