Tax-exempt bonds

The new Congress will have a full plate including deciding the fate of the Tax Cuts and Jobs Act and Internal Revenue Service funding in a legislature that's already showing cracks of disagreement.

The Republicans are using "magic math" to disguise the cost of extending the TCJA, Sen. Elizabeth Warren said.

New Senate Majority Leader John Thune, who played a key role in negotiations of the Tax Cuts and Jobs Act, noted at the time the "fierce support in both chambers" for tax-exempt private activity bonds.

Trump's proposed corporate tax cut, if enacted, would further concentrate the buyer base and increase the chance of volatility, said Wells Fargo head of municipal strategy Vikram Rai.

Numerous vital issues are on the docket for the new Trump administration.

Despite studies showing questionable financials, municipalities continue to build

The higher-ed sector, already facing internal pressures, could face scrutiny over its tax-exempt status during tax reform next year.

Advocates hope to use the data to persuade lawmakers of the usefulness of tax-exempt bonds as Congress tackles tax policy next year.

Two former Congressional staffers offered insight into how the debate may play out, but said the industry needs to be vocal and educate lawmakers how bonds help their district.

The triple-tax-exempt bonds should be in demand, especially the non-AMT series, analysts said.

Issuers in five Far West states increased their borrowing the first half of the year, while four saw sizable decreases.

Lawmakers could take a scalpel to certain bonds and sectors to penalize issuers for unrelated policies, like school vouchers or campus protests.

Vance has called for eliminating the SALT deduction, calling it "massively redistributive toward the lower- and middle-income brackets."

While the muni market lobbies for its wish list, investors keep in mind that any tax rate changes affect appetite and market technicals.

It's one of the most controversial uses of tax-exempt debt, but repeated legislative efforts to eliminate it have failed.

Tribal advocates hope that Congress will take up expanded tribal access to the tax-exempt market next year as the U.S. tax code takes center stage.

A recent report calls for the elimination of the muni bond tax-exemption.

The snub could become more important next year when Tax Cuts and Jobs Act provisions expire and tax issues take center stage at Congress.

In "my nearly 50 years in finance, I've never seen more demand for energy infrastructure," BlackRock CEO Larry Fink said in his latest investor letter.

Citi's exit comes amid the larger trend of broker-dealers downsizing balance sheets, which can hurt secondary market liquidity, particularly in times of stress. Other market players are coming into the fold.