Valley Bank's Brigati on Biden's New Infrastructure Law

The video discusses the impact of grants on the municipal market, suggesting that while grants may reduce the need for traditional borrowing, they can improve credit quality. The discussion also covers supply and demand dynamics, noting that while supply may drop, demand remains strong. Rising interest rates are seen as beneficial in the long term, potentially flattening the curve. Tax strategies like tax loss swapping are recommended, and caution is advised regarding lower-rated higher education credits. Airport revenue bonds are highlighted as potential opportunities due to infrastructure projects.

What is one potential benefit for municipalities receiving grants for infrastructure projects?

• Decreased demand for municipal bonds

• Higher interest rates

• Improved credit quality

• Increased borrowing needs

How might grants affect the supply of municipal bonds?

• Double the supply

• Decrease the supply slightly

• Have no effect on supply

• Increase the supply significantly

What is a potential headwind for the municipal market discussed in the video?

• Stable interest rates

• Decreasing demand

• Rising yields

• Decreasing inflation

What tax strategy is recommended for individuals with gains in their equity portfolios?

• Tax gain harvesting

• Tax loss swapping

• Tax credit utilization

• Tax deferral

Which type of municipal bonds might benefit from increased ridership due to infrastructure projects?

• General obligation bonds

• Water utility bonds

• School district bonds

• Airport revenue bonds