Washington - Taxation
Proposed 28% Cap Could Force Redemption of Billions of Debt
Friday, January 11, 2013
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A retroactive 28% cap on the value of tax exemption could trigger the mandatory redemption of billions of dollars of bonds, according to market experts.

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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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