Muni Think

Banks have a range of options to calculate "gross-up" provisions on direct placement bonds, which allow them to maintain their after-tax yield after this year's cut in corporate tax rates.

The bill would restore an important source of liquidity for state and local governments and the financing of critical infrastructure projects in communities across the nation.

Many provisions of the Tax Cuts and Jobs Act are punitive to tax exempt healthcare.

While the new tax law may portend a difficult year for the municipal market, higher short-term rates and low supply should propel demand in 2018.

President Trump’s call for $1 trillion in federal public infrastructure investment appears to have foundered, even as the national debt has accelerated, posing increased threats to the cost of state and local financing of public infrastructure.

It continues to be up to issuers and other beneficiaries of municipal bonds to raise awareness of the negative effect of the proposed tax reform legislation -- but time is running out.

First on the list is an infrastructure plan we can embrace fully – with clearly identified and unencumbered revenue streams from the Federal level.

By continuing to insist on their pound of flesh, bondholders will lose more.

The author is deeply concerned the House bill would eliminate the tax exemption for private activity bonds and that both bills would eliminate the advance refunding of municipal bonds.

Congress should look to municipal experts to make the case for revenue triggers as a way to allay concern that tax cuts will necessitate spending reductions.