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Muni yields have been slow to reprice Federal Reserve expectations, but on Wednesday, they caught up fast, said James Pruskowski, managing director at Hennion & Walsh.
The White House has cut funding to states via curtailed disaster relief, paused infrastructure funding, and changes to the Medicaid program.
The statement "is a significant policy document providing guidance to MAs as to their roles, responsibilities, and potential liability under the federal securities laws," said Paul Kisslinger, a partner at Barnes & Thornburg.
Proposition 40 aims to raise $100 billion through a one-time tax on assets over $1 billion to offset federal Medicaid cuts.
Payson's $21.21 million taxable pledged revenue obligations issue comes amid a riskier environment for pension-related borrowings.