When It Comes To Showing Savings From Refunding, Cost Is No Object

The Bond Buyer - May 18, 2021

Andy Kalotay calls to task the lobbying effort by muni trade assocations to restore advance refunding. He notes that the primary beneficiaries of the resulting churning would be the transaction infrastructure, at the expense of the municipal issuers and their taxpayers. The source of the problem is that 5% bonds are callable at par, and then refunded even if interest rates increase. Download the article text here.

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