Morgan Stanley: State Credit Improves, But Challenges Remain
States have moved beyond the recession-driven liquidity crisis but there are sources of ongoing weaknesses such as unfunded pensions that make states unable to rely on economic growth alone to mitigate risks of default and future structural budget stability, Morgan Stanley concludes in a report.
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The Congressional Budget Office's more positive forecast for the federal government's budget and debt are a "positive" for the United States' credit, Moody's Investors Service said in a report Monday. more »
The U.S. Department of Housing and Urban development selected of a group of financial advisors, researchers, and consultants to provide technical assistance and advice to distressed municipalities. more »
The disconnect between politicians planning horizon and the longer vision required to plan for retirement funding benefits was discussed at the National Federation of Municipal Analysts annual conference. more »
Throughout and following the economic downturn, states have remained one of the most creditworthy sectors, which is largely a result of the unique countercyclical federal support they receive, according to a recent report from Standard & Poor's. more »
For the first time ever, state and local governments' contribution to national gross domestic product is still negative three years after a recession has passed its low point, the Tax Policy Center found in a new report. more »
Moody's Investors Service issued a report on Wednesday that examined the local governments and school districts that rely on federal employment, procurement, Medicare reimbursement and education grants that would be most affected by sequestration. more »
Three Republican Senators have introduced a companion bill to the one Rep. Devin Nunes, R-Calif., offered in the House last week that would prohibit state and local governments from issuing tax-exempt and other municipal bonds unless they file annual pension reports containing certain information with the Treasury Department. more »
Rep. Devin Nunes has introduced legislation that would prohibit state and local governments from issuing tax-exempt, direct-pay and tax credit bonds unless they file annual reports with the Treasury that contain information about their pension plans, including their net unfunded liabilities and amount of pension obligation bonds outstanding. more »
Bloomberg News
President Obama's fiscal year 2014 budget again proposed a 28% cap on tax expenditures including municipal bond interest for the top 2% of income earners, despite efforts by muni market participants lobbying against the proposal. more »
The Federal Aviation Administration has delayed closing 149 air traffic control towers until June 15, including 14 in Florida — the largest number of facilities affected in one state. more »
The $1.2 trillion in automatic, across-the-board spending cuts that went into effect in March will have a low to moderate impact on public finance housing bond issuers, a new Moody's Investor Service report said Tuesday. more »
More municipalities are likely to become distressed, according to a new Fitch Ratings report on the outlook for U.S. local governments. more »
President Obama will release his fiscal year 2014 budget proposal on April 10, Deputy Press Secretary Josh Earnest said Thursday at a briefing. more »
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Opinion

Before the financial crisis of 2008-09, it would have been significant news if yields on municipal bonds had exceeded those on Treasury securities at any maturity, and that occurrence likely would have attracted a variety of investors seeking to take advantage of the relative-value opportunity.

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