Muni Think

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.

A longtime bond professional explains why he’s an understanding holder of Puerto Rico general obligation debt -- and angry investor in the island’s sales tax revenue bonds.

As the political gears churn, issuers and borrowers should huddle with legal counsel and financial advisors to consider the possibility of worst-case scenarios in which some or all of the proposed tax reform legislation is enacted.

While muni advocates may have an opportunity to defend private activity bonds and deductions favorable to the market, both Houses of Congress appear to be aligned on banning advance refundings.

Two triple-A rated states received a D-minus in the pension and OPEB category.