Among the concerns MBFA identifies is a fundamental alteration of the function of what has been a healthy and efficient tax exempt municipal bond market. Of more immediate concern is the market reaction occurring as a result of the reconsideration of the 28% cap contained originally in President’s FY 2012 budget proposal. The threat of such a cap has, in recent days, been a factor in causing muni bonds to become more expensive from the perspective of state and local government issuers, with yields rising sharply.
View the letter to President Obama [here.]
View the letter to House and Senate Leadership [here.]