The House of Representatives is expected this week to take up H.R. 2, the Moving Forward Act, legislation to reauthorize and enhance infrastructure finance. Today a coalition of 25 municipal-focused organizations including BDA sent a letter to all members of Congress supporting HR 2 and urging congressional approval. The bill includes a number of municipal…
Category: Fed and Stimulus Activity
Fed Economists Cite Municipal Market’s Recovery
Economists at the Federal Reserve Bank of New York released a report yesterday on the performance of the municipal market during the pandemic. The report highlights the extraordinary volatility and yield spikes in the municipal market in March and the stabilization that has occurred since. The report examines trends such as the movement of the…
Fed Announces Start of Primary Market Corporate Credit Facility
The Federal Reserve announced yesterday that their Primary Market Corporate Credit Facility (PMCCF) has begun operations. The Fed announced the PMCCF in March as one element of their pandemic response. Under the program, the Fed has committed to buy certain new issue corporate bonds and syndicated loans from qualified issuers. The Fed will focus on deals with …
HR2: U.S. House Infrastructure Tax Bill
Including long sought provisions by BDA and BDA members, the Democratic House leaders this morning released their full transportation infrastructure bill. The House bill HR2, includes the following provisions: Restoration of direct pay bonds: The bill proposes a new category of “Qualified Infrastructure Bond.” QIBs would be taxable bonds similar to Build America Bonds where a cash…
Fed Expands Secondary Market Corporate Credit Facility
Today, the New York Fed announced it will be expanding the SMCCF and will purchase individual bonds along with the currently traded ETF’s. Under the new guidelines, the Fed will buy individual bonds on the secondary market that have remaining maturities of five years or less The updated term sheet can be viewed here. **All BDA…
BDA to Join CDFA in Support of Industrial Development Bonds Legislation
The BDA is joining forces with the Council of Development Finance Agencies in support of the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA). The bill, sponsored by Reps. Stephanie Murphy (D-FL) and Darin LaHood (R-IL), would modernize the Internal Revenue Code as it relates to small issue bonds, specifically the private activity bond rules for first-time farmers…
Ways and Means Continues Work on Surface Transportation Bill
Tax Provisions Expected Later this Month The BDA has learned that the House Committee on Ways and Means today will conduct an internal conference call to discuss next steps in development of the tax title to the recently introduced Invest in America Act, a reauthorization bill focused on surface transportation and environmental impacts. Many expect…
House Legislators Urge Fed to Expand Municipal Liquidity Facility
Coincides with BDA Lobbying Efforts to Expand MLF Yesterday, a bipartisan group of House legislators wrote the Fed asking to further lower the population thresholds for issuer participation in the Municipal Liquidity Facility (MLF). This follows the BDA’s April 15th letter in which the BDA urged the Fed to expand the scope of the MLF, stating that…
House Introduces Surface Transportation Package Bond Provisions not Included in Initial Draft
Today, the House Committee on Transportation and Infrastructure introduced the Invest in America Act, a reauthorization bill focused on surface transportation and environmental impacts. The bill is part of the original Moving America Framework, the House Democrats January infrastructure outline, however this package includes no bond provisions as the original framework provided. The BDA continues…
BDA Calls on Fed to Include all Banks and Dealers who Provide Liquidity in Emergency Programs
Today, the BDA submitted additional comments to the Federal Reserve on their continued intervention in the capital markets to discuss market structure, and the need to expand their emergency programs to include all banks and dealers who provide liquidity to the market. The letter can be viewed here. **All BDA COVID-19 correspondence can be viewed here.…