The U.S. municipal bond market would benefit from higher taxes either under a Democratic sweep of the White House, Senate and House, or to a lesser extent, if the coming election results in a second term for President Donald Trump and a continued split Congress, a Citi research report said on Monday. Under either scenario “taxes will be going up one way or the other,” according to Citi. States, cities, schools and other issuers sell debt in the $3.9 trillion muni market that attracts mainly higher-income investors due to an exemption from federal income taxes and at times from state and local taxation as well.
Source: Reuters.
