The U.S. Federal Reserve came to the rescue with its quantitative easing program, propping up corporate and high yield bonds. The municipal bond market will face its own challenges as the economy pushes forward in a post-coronavirus world.
One case in point is the $900 million bond offering from the Metropolitan Transportation Authority.
“The new MTA deal will likely be a test case for one of the more severely impacted revenue bond issuers,” said Jeffrey Lipton, Oppenheimer head of municipal research and strategy.
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by BEN HERNANDEZ on APRIL 30, 2020