Friday, September 17, 2021 |
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MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino Jeff Goble • Nicole Burczyk • Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris Brian Schaff • Josh Kiefer • Robert Schuyler • Tom Toburen • Aaron Hemphill • Jared Willhoft |
| US Treasury Market | |||||||||||
| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 09/10/21 | 0.06 | 0.05 | 0.06 | 0.08 | 0.23 | 0.45 | 0.82 | 1.12 | 1.35 | 1.86 | 1.94 |
| 09/13/21 | 0.06 | 0.06 | 0.06 | 0.07 | 0.21 | 0.44 | 0.81 | 1.11 | 1.33 | 1.83 | 1.91 |
| 09/14/21 | 0.05 | 0.04 | 0.05 | 0.07 | 0.21 | 0.43 | 0.79 | 1.07 | 1.28 | 1.78 | 1.85 |
| 09/15/21 | 0.04 | 0.04 | 0.05 | 0.07 | 0.21 | 0.43 | 0.81 | 1.10 | 1.31 | 1.80 | 1.87 |
| 09/16/21 | 0.06 | 0.04 | 0.05 | 0.07 | 0.23 | 0.46 | 0.84 | 1.13 | 1.34 | 1.83 | 1.88 |
A Municipal Trader's Perspective
They’re Baaack……Well, maybe
Remember BABs (Build America Bonds)? What about advance refunding in the municipal market? How long have legislators been talking about expanding the BQ issuance limit from $10 million to $30 million? They did for a temporary period in 2009 & 2010.
All of these are back on the negotiating table in D.C. The U.S. House Ways and Means Committee has advanced legislation that would re-instate a key debt-refinancing tool for state and local governments, create a Build America Bonds-style program, and increase the BQ issuance limit to $30mm.
The legislation, if approved, would be called the Build Back Better Act. The biggest impact would be the reinstatement of the debt refinancing tool known as advance refunding, which had been eliminated in the 2017 tax overhaul. Reinstating this program could potentially unlock billions of new issuance in 2022 and beyond. While expanding the BQ limit to $30 million won’t create new issuance, it would allow for an expanded list of available issues for banks to consider. For 2021 issuance thus far, Bloomberg data shows another $18 billion in 1100 individual sales would have qualified under the $30 million limit.
This isn’t a done deal and these proposals could all be long shots. Stay tuned.
This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.
•Not FDIC Insured •No Bank Guarantee •May Lose Value