Public finance

While most muni market participants agree that 2017 could be the year of comprehensive tax reform, they have mixed views on whether the muni exemption is safe under the tax proposals of President-Elect Donald Trump and House Republicans.

Tolls on interstate highways are seen as the only way to provide the revenue stream in President-elect Donald Trump's infrastructure proposal.

INDIANA

ILLINOIS

In the week ended Dec.29, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell seven basis points to 4.28% from 4.35% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.

Conservative strategies such as shortening duration and high liquidity proved fruitful for two mutual funds against the backdrop of massive mutual fund inflows and money market reform.

Changes to tax laws, interest rates, inflation, and volume are likely to drive the market in 2017, according to municipal experts.

Finding more revenue for transportation infrastructure will be elusive but obtainable in 2017.

ARKANSAS

Members of Donald Trump's transition team have been reaching out to muni market participants as the President-elect plans an infrastructure task force.

Volatility whipsawed the municipal bond market in 2016 as the election of Donald Trump was followed by a swift and severe sell-off in the fourth quarter.

Alabama state lawmakers in 2017 will weigh competing major bond programs to fund transportation and prison construction, as well as two controversial gambling proposals.

NEW YORK

CALIFORNIA

ILLINOIS

Latest estimates show declining ridership on Washington’s Metro won’t harm the $5.6 billion Purple Line P3 rail project.

States will have a modest increase in their capacity to issue private activity bonds in 2017, based on data from the Internal Revenue Service and the U.S. Census Bureau.

MICHIGAN

COLORADO

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased to 4.35% from 4.33% from the previous week.