Muni Think

Not enough has been done to provide municipal issuers, obligated parties and underwriters the clarity sought and needed by the market.

In the past 3½ years, the Securities and Exchange Commission has asserted its enforcement role considerably, in what can fairly be described as a form of direct regulation of issuers.

Tennessee, Florida, Arkansas, and Michigan have shown significant improvement in economic health over the past year, while some stronger states have been underperforming.

What's the appeal of the tax-credit alternative? It guarantees that a holder will receive full value as long as he has a matching tax liability. That's true even if the issuing State is in a financial crisis and can't pay its bondholders.

Municipalities buy insurance to obtain a higher credit rating for a bond issue and a commensurately lower borrowing cost. The savings arise from a lower coupon or, if the coupon is fixed, a higher price. But how can municipalities make sure that bond insurance makes economic sense for them? The answer is to pay close attention to the costs and benefits.

No single individual played a more critical role in defending the authority of cities, counties, and states to issue state and municipal debt.

As we await the final shoe to drop with regard to the SEC's MCDC initiative, the municipal market may be at a turning point in terms of disclosure.

States like Colorado will continue to forego revenue, as well as the opportunity to borrow against that revenue in the bond market, until the cannabis industry gains access to the banking system.

Our legislation would preserve money market funds as a source of liquidity and capital for public the infrastructure needs of our citizens.

The interest rate environment can have a big effect on issuers' debt management programs. Here’s how to incorporate interest rates prudently to ensure flexibility and long-term sustainability.