Cities and states should “keep calm and issue bonds” despite sticker shock from rising interest rates and a volatile municipal bond market. That was the message from panelists speaking Thursday at the Government Finance Officers Association’s annual MiniMuni event, a three-day online event for issuers. The rise in rates “makes our jobs as debt managers that much trickier and that much more painful,” said Paul Chatalas, capital markets manager for the state of Illinois. But there’s a silver lining, Chatalas said. “Volatility creates opportunity for the investor and opportunity for the investor is not necessarily bad for the issuer,” he said. “Fundamentals still apply, just as much now as they do in easier times. So, keep calm and issue bonds.”
Source: The Bond Buyer
