Even after the Fed cut rates to near zero, the stock market plunged Monday, setting off automatic circuit breakers that shut down trading. Short-end munis were being blown out with yields rising as much as 20 basis points on the short end as investors seek cash.
The globe is facing a pandemic that is testing what financial markets, governments, and individuals can reasonably handle.
The municipal finance industry is dealing with minute-by-minute news of state-wide school closures, shuttered restaurants, curfews and canceled events. New issues are increasingly being put on the day-to-day calendar.
Governments are trying to assess the financial impacts on their budgets and planning how they deal with the very real lost revenues from this virus. New York City noted that it will likely see a $3.2 billion decline in less revenue over the next six months.
(Read more: The Bond Buyer)
