Members of the Public Finance Network are asking the Federal Reserve to expedite its purchase of municipal securities to help restore equilibrium to the market.
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Section 4003(b)(4) of the bill, also known as the CARES Act, gives the Fed and Treasury up to 10 days to begin purchasing municipal securities on the secondary market…. that deadline is Monday, April 13.
The letter urges speedier action.
“Stability in our $3.8 trillion municipal bond market is particularly important during this crisis as state and local governments and the municipal bond market provide critical support for the infrastructure — including hospitals — needed to care for and support our citizens,” said a letter.
Market participants are expecting significant and broad-based relief from the Fed and Treasury delivered on an expedited basis.
(Read more: The Bond Buyer)
