Should Your Community Bank Buy Private Placement Municipal Bonds?

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Over the past few years, the municipal securities market has experienced a growing number of municipal issuers that have met their borrowing needs by going directly to investors to access capital. This practice is commonly referred to as a “private placement.” There are many reasons why an issuer may elect to issue a private placement […]

Should Your Community Bank Buy Private Placement Municipal Bonds?

The Baker Group's Pen and pad used for writing The Baker Group's articles

Over the past few years, the municipal securities market has experienced a growing number of municipal issuers that have met their borrowing needs by going directly to investors to access capital. This practice is commonly referred to as a “private placement.” There are many reasons why an issuer may elect to issue a private placement […]

Federal Reserve to Provide Lending Facility to Municipalities

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The Federal Reserve just announced a new Municipal Lending Facility targeted to specific state and local governments. The facility will buy up to $500 billion of short-term notes directly from states and local governments. Only cities with a population of at least one million residents and counties with a population of at least two million […]

COVID-19 Municipal Market Impact

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The municipal securities market is going through unprecedented volatility amidst the COVID-19 pandemic. The initial “flight-to-quality” into U.S. Treasuries in early March also included a rally in the municipal sector that drove yields down to all-time lows. The 10yr AAA MMD benchmark index reached just 78 basis points on March 9th. Less than two weeks […]