Forget bitcoin or Tesla. Muni bonds are the king of costly
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In a bid to clean up election funding, the government had in January introduced electoral bonds that can be bought from specified branches of State Bank of India and used to donate money to political parties. Photo: iStockphoto
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Brian Chappatta
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Believe it or not, the $3.9 trillion municipal-bond market and Bitcoin have much in common.
A flood of money pouring in? Check: Muni bond funds added about $2 billion in the week ended Feb. 17, according to Refinitiv Lipper US Fund Flows data, building upon a $2.6 billion inflow in the prior period that was the fourth-largest on record. Scarce supply? You bet: Some analysts estimate that states and cities in 2021 will bring to market the smallest amount of tax-exempt bonds in 21 years. Fiscal stimulus supporting its case? Indeed: The prospect of $350 billion in aid to state and local governments should help stave off any widespread credit str
Forget Bitcoin or Tesla. Muni Bonds Are the King of Costly.
Feb 24 2021, 1:13 AM
February 22 2021, 4:00 PM
February 24 2021, 1:13 AM
(Bloomberg Opinion) Believe it or not, the $3.9 trillion municipal-bond market and Bitcoin have much in common.
(Bloomberg Opinion) Believe it or not, the $3.9 trillion municipal-bond market and Bitcoin have much in common.
A flood of money pouring in? Check: Muni bond funds added about $2 billion in the week ended Feb. 17, according to Refinitiv Lipper US Fund Flows data, building upon a $2.6 billion inflow in the prior period that was the fourth-largest on record. Scarce supply? You bet: Some analysts estimate that states and cities in 2021 will bring to market the smallest amount of tax-exempt bonds in 21 years. Fiscal stimulus supporting its case? Indeed: The prospect of $350 billion in aid to state and local governments should help stave off any widespread credit stress.
Analysis: State and city cutbacks stifle broader U.S. economic recovery
BLOOMBERG
Print
State and local governments are exerting the biggest drag on the U.S. economy in more than a decade as they eliminate jobs and cut spending in the wake of the pandemic, underscoring President Joe Biden s push to extend aid to make up for lost tax revenue.
Such cutbacks have contributed to a slowdown in the economy for three straight quarters, marking the longest taper since the fiscal crisis that persisted from 2009 to 2012, according to preliminary data released by the U.S. Bureau of Economic Analysis on Thursday, Jan. 28.
The pace of tax-free bond sales could drop this year to a more than two-decade low.
Nic Querolo | Jan 12, 2021
(Bloomberg) America’s municipal-bond market is becoming less of a tax haven.
Interest rates have sunk so low that states and local governments have been flooding the market with bonds that aren’t tax-exempt, allowing them to revive a refinancing tactic that was stripped of its subsidies by President Donald Trump’s 2017 tax-cut law or sidestep federal rules on how the proceeds can be spent.
The volume of taxable municipal-debt sales more than doubled last year to about $140 billion, the most since the Obama administration’s Build America Bond program picked up part of the interest bills on state and local securities to stoke the economy after the recession. At the same time, tax-exempt bond sales declined about 8% to $315 billion, according to data compiled by Bloomberg.
Updated Dec 13, 2020 | 11:35 IST
Ashwathanarayana also commended the efforts of the federation for organizing the annual event virtually despite restrictions in place due to COVID 19. BAF will play key role in B lore s rise: K tka Deputy CM | Photo Credit: PTI
Karnataka Deputy Chief Minister CN Ashwathanarayana on Saturday asserted that Bangalore Apartments Federation (BAF) will play a key role in the development of the city in the coming years.
Ashwathanarayana made these remarks while virtually addressing the gathering of BAMBOOS , an annual two days event organized by the Bangalore Apartments Federation (BAF). More and more residents of the city will be dwelling in apartments in the years to come and BFA will have a crucial role. At present about 10 lakh people in the city live in BAF communities, he said.