Sen. Jeff Bingaman, D-N.M., has introduced a bill that would raise the small-issuer limit for bank-qualified bonds to $30 million from $10 million — legislation that is drawing strong support from issuer and muni market groups.

Under the bill, whose co-sponsors include three Republicans, banks would be able to deduct 80% of the cost of buying and carrying the tax-exempt bonds of issuers that sell no more than $30 million of muni bonds per year.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.