California, New York Bond Deals Test Demand for SALT Tax Havens

The video discusses the impact of recent tax law changes on the municipal bond market, highlighting increased demand from investors in high-tax states. This demand has led to tighter spreads and lower borrowing costs for states like California and New York. Despite high demand, supply is not keeping pace, presenting an opportunity for local governments to issue bonds at attractive rates. However, states remain cautious in their borrowing strategies to avoid excessive debt.

What has been the overarching story for Muni investors in 2019?

How much cash have Muni mutual funds attracted since the start of the year?

What is the current supply situation for municipal bonds compared to demand?

What opportunity do mayors and governors have in the current bond market?

What caution is being exercised by state and local governments regarding borrowing?