Municipal Bonds After the Deluge

January 22, 2018

Reprinted with permission from Tax Notes, January 22, 2018

For generations, municipalities have leveraged their authority to issue tax-exempt debt to encourage private investments in public goods. In so doing, state and local governments can revitalize communities with private money, thus avoiding the bloated public balance sheets that led to Detroit's 2013 bankruptcy and Puerto Rico's effective bankruptcy last year. Last month's near termination of the $102 billion annual market for tax-exempt private activity bonds (PABs) (more than 20 percent of the U.S. tax-exempt bond market), before Republicans restored the break 10 days before the zero hour, fundamentally undermined the stability of a market that depends on stability for its value. Read more.

Copyright © 2018 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

Subscribe to Ballard Spahr Mailing Lists

Get the latest significant legal alerts, news, webinars, and insights that affect your industry.