Yesterday's front-page story about credit problems affecting the short-term market included two points that require clarification. Liquidity providers cannot walk away from their obligations to buy bonds back from an investor unless a tender-option termination event occurs, typically a downgrade of the bonds to below investment grade rather than to double-A. In addition, in auction-rate security auctions, banks are not the liquidity providers but have the option to backstop deals.
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The county commission said it hopes to regain Moody's ratings this fall.
July 3 -
Market participants launched the largest lobbying effort in recent memory to protect municipal bonds and got what they wanted as the tax-exemption survived.
July 3 -
UST yields rose across the curve in response to the employment report with the two-year rising nearly 10 basis points while municipals largely ignored the moves and ratios fell as a result.
July 3 -
Oregon Department of Transportation leaders said they will begin layoffs Monday after lawmakers adjourned without passing a transportation funding bill.
July 3 -
"If you are seeking the services of a municipal advisor, it would be helpful to use the term municipal advisor in your RFP/Qs," said Sanchez, director of the SEC's Office of Municipal Securities.
July 3 -
The growth of the muni market comes as issuance surges, with the first half of the year seeing $280.64 billion of supply, up 14.3% year-over-year, according to LSEG.
July 3