State and local governments can reap the benefits just when they need money most. When the coronavirus pandemic struck the U.S. in early March, among the first reported casualties was the $3.9 trillion market for states and local governments. The yield on municipal debt sold by almost 2,000 borrowers with more than 55,000 outstanding securities hovered at 1.14%, the lowest since at least 1979, when the Bloomberg Barclays U.S. Municipal Index began compiling data. … All told, states and local governments this year will match or exceed the decade-high $478 billion of new offerings in 2016. That’s because the appetite for tax-exempt securities shows no signs of abating when the yield on municipal debt remains relatively high.
Source: Bloomberg.
