Muni Think

From the private sector's perspective, a viable and profitable new commercial real estate industry and investment asset class has emerged, one which offers considerable business opportunities in construction, property management, and real estate finance.

Twelve states, including California, impose no restrictions on municipalities’ ability to file for Chapter 9 bankruptcy. On the other extreme, there are three states that do not allow local Chapter 9 filings and more than 20 that are silent on the matter, which is generally considered a prohibition.

We decry the decrepit state of our “crumbling” infrastructure, but we have yet to adopt legal rules needed to provide for its ongoing maintenance and repair.

Water and wastewater utilities spend three to four months assembling a bond team of financial experts, reviewing financial ratios and developing the offering statement as part of their due-diligence process prior to issuing millions in debt. However, many have failed to assess the financial risks associated with the replacement costs of underground infrastructure.

Recent congressional hearings and their aftermath have led to increased and evolved discussion of financial reform and the regulation of practitioners in the field of municipal securities. The current focal point, and long-time elephant in the room, is fiduciary duty and how it should or should not apply to various participants in the municipal securities process.

Since its inception in the early 1990s, the tax-exempt swap market has allowed issuers to execute synthetic pay-fixed interest rate swaps to produce interest-cost savings relative to traditional fixed-rate bonds.

Like a snowball rolling down a hill, the idea of applying a fiduciary duty standard to broker-dealers is gaining momentum.

Michael Decker, managing director and co-head of municipal securities at SIFMA, sets forth his case for not federally regulating underwriters when they provide what he calls “advice” to municipal securities issuers.

Like a snowball rolling down a hill, the idea of applying a fiduciary duty standard to broker-dealers is gaining momentum.

A troubling series of proposals has emerged in the U.S. Senate debate over changes to federal regulation of the financial markets.