Tax

The 20% corporate tax rate also would have an adverse impact on the muni market.

While some buy side analysts see a supply “nightmare” following the tax reform proposal, others are looking for opportunities to "stock up" on munis.

The muni market would fare better in the Senate Republicans' tax reform proposal, which would preserve private activity bonds and enhance them through the repeal of the alternative minimum tax. However, advance refundings and the SALT deduction would be terminated, a "one-two punch" for state and local governments.

The Illinois Finance Authority authorized a passel of deals that would be outlawed by a GOP tax bill.

Many large schools have already dipped their toes into the taxable bond market, but smaller schools would find it tougher.

The elimination of private activity bonds “would throw gasoline on a housing shortage," said John Chiang, California's treasurer.

Blow-back from the sell-side centered on the proposal's potential to drive up infrastructure financing costs and accelerate the departure of smaller firms from the business.

Mayor Bill de Blasio's advisors worry about the effect of eliminating advance refundings and private activity bonds.

Tax-exempt student loan bonds have saved families $815M over the last 20 years.

Senate Finance Commitee chairman Orrin Hatch's tax proposal will likely be kinder to municipal bonds than the House's bill, but harder on states and localities.