Reorg – Market Participants, Muni Advocates Push for More Muni Provisions in $3.5T, and Reconciliation Bill After Failed Attempts in Covid-19, Infrastructure Legislation

August 26, 2021
Original article by Anastasia Bergeron

Wesly Pate, portfolio manager at Income Research + Management, shared his views on the impacts a federal infrastructure reform package and other policymaking decisions may have on the municipal bond market with Reorg. Wesly spoke to the three key provisions of the budget reconciliation bill that’s tied to the infrastructure bill, pointing out the benefits of advance refunding for munis while noting his disappointment concerning the lack of a direct-pay bonds program in the legislation. Wesly also argued that raising the bank qualified debt limit would not reap the same rewards for the asset class as this policy did a decade ago, given that banks have moved away from munis.

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