Sarah Wynn

Public finance groups expressed hope the bill’s introduction will pave the way for consideration of municipal bond provisions.

All U.S. states will be able to have at least two cities or counties eligible to directly issue notes to the Municipal Liquidity Facility program regardless of population.

Illinois did not use its maximum amount of notes in the Fed program which could mean a possible expansion of eligibility for the muni program.

State and local governments have increasingly filed COVID-19-related disclosures to the market, but only about 931 issuers out of roughly 40,000 have filed over 1,500 material event notices and continuing disclosures since the pandemic began.

Dealer groups supported the MSRB's move, saying it would remove a disincentive to use the Fed's short-note program.

Borrowing may not be the best way to replace revenue losses unless municipalities have good reason and the debt capacity to do so, former state officials said.

Issuers say the Treasury's intent was to open up COVID-19 funds for public safety costs.

An injunction was issued against U.S. Immigration and Customs Enforcement, which could impact a prison's facility's revenue bonds.

Without federal funding, many toll facilities will be forced to comply with bond covenant requirements, which could mean reductions in workforces and delays in capital projects, toll groups said.

The announcement comes at a pivotal time for the municipal market as the SEC released a statement earlier this month detailing the kinds of coronavirus disclosures municipalities should be making.

GFOA will be launching a new online learning-management system by the end of the year to connect its members.

The GFOA is advocating for federal funding for special districts, which have not received any specific funding.

In March 2020, spreads skyrocketed to 97 basis points before dropping slightly to 88 basis points in April 2020.

The MSRB also said more municipalities have begun referencing CARES Act loans in their disclosures.

Kent Hiteshew, who was recently hired by the Fed to help with the municipal market, said the Municipal Liquidity Facility opened Monday.

Analysts and issuers say the Municipal Liquidity Facility is a last resort aimed primarily at lower-rated issuers. But recent deals could prove the MLF’s effectiveness as a backstop.

SIFMA released two new model documents to reflect the senior managing underwriter’s role to make standard disclosures as well as its own dealer transaction specific disclosures to keep up with changes to the MSRB's fair dealing rule.

Market participants want the Fed to get the program up and running by the end of this month.

More issuers are missing bond payments and deadlines for filing annual financials; the Roman Catholic Church of the Archdiocese of New Orleans filed for bankruptcy partially blaming COVID-19, affecting $41 million of bonds.

The Fed’s rates send a signal to the municipal market that it wants it to survive on its own.