BDA

Broker-dealers oppose a proposed change to MSRB's governance rule that would reserve two seats for municipal advisors.

Groups representing dealer firms and issuers both weighed in positively Monday evening after the Fed’s afternoon decision that it will expand its Municipal Liquidity Facility in both scope and duration.

The Municipal Liquidity Facility will purchase up to $500 billion of short-term notes.

BDA wants the he Fed to consider a standby, short-term lending facility for states and localities experiencing cash flow timing shortfalls.

Demonstrating compliance with pricing and supervision rules has been challenging in the COVID-19-influenced market.

BDA told Fed Chair Jerome Powell that two existing programs could help the muni market overcome the impact of the virus.

“Anybody who’s having an event between now and May is considering what to do about it,” said Mike Nicholas, CEO of the Bond Dealers of America.

Congressional offices may decide to minimize or ban face-to-face meetings as virus concerns grow.

Rep. Steve Stivers, R-Ohio, is looking to attach tax-exempt advance refunding to an appropriations bill or other suitable legislation.

The longtime muni lobbyist is now BDA's vice president of policy and research, after having played a less formal role over the past year.

The American Securities Association sent a letter to the SEC regarding the regulator's proposed exemptive order for muni advisors, calling it an "ill-advised effort."

Members of the Public Finance Network sent a letter to Congress urging restoration of advance refunding for tax-exempt bonds.

Some muni market members don’t see hope for an infrastructure bill passing in 2020, even though Trump called for it in his address.

The dealer group has opposed the proposed order from the start, and is keeping the pressure on as the SEC appears poised to approve the proposal in some form.

The $760 billion, 5-year plan also calls for expanding qualified private activity bonds, reinstating tax credit bonds, and more bond-friendly provisions.

Bond Dealers of America sent the SEC a long list of requests to limit municipal advisors' roles in private placements.

An SEC advisory committee recommended allowing investment advisers affiliated with broker-dealers to offer and sell negotiated new issue muni bonds during the order period that the dealer also participates in.

As surface transportation funding is set to expire later in 2020, a new reauthorization could help push muni bond initiatives next year.

Another round of tax legislation is not expected to emerge until the very end of the year after the presidential election or in 2021 after a new Congress is sworn in.

The proposal would impact the private placement business and may require amendments of MSRB rules.