After years of BAB subsidy cuts, wariness of new direct-pay tools

The political headaches that have long plagued Build America Bonds in the form of annual subsidy cuts may dampen interest in President Joe Biden's new direct-pay tax credits while highlighting the value of the traditional tax exemption. "The exposure to the vacillations of the federal budgeting process is really an underappreciated disadvantage of Build America Bonds and the whole notion of direct pay," said Justin Marlowe, a research professor at the University of Chicago's Harris School of Public Policy.

Registration is open for The Bond Buyer Texas Public Finance conference next month in Austin.

In celebration of Women's History Month, The Bond Buyer invited one of the icons of public finance, Suzanne Shank , to its podcast to talk about the importance of women in the municipal bond business. She reveals what led her into the municipal bond business and discusses her firm's continuing commitment to munis and strategy for growth.?

Check out our most recent Rising Stars and the second class of Muni Hall of Famers.

Texas laws that bar investment banks from underwriting state and local government debt if their policies are deemed harmful to the fossil fuel or firearms industries will have negative consequences for taxpayers and the business climate, according to a study released last week by a state business group. The study, conducted for the Texas Association of Business Chambers of Commerce Foundation by Austin-based economic analysis and public policy consulting firm TXP, Inc., found that less competition in the municipal bond market for Texas debt as a result of the laws "is leading to higher interest costs, which in turn increases the debt burdens of local governments, straining resources and levying additional costs on Texas taxpayers."

Register for The Bond Buyer's new Southeast Public Finance conference coming May 6-7 in Hollywood, Florida.

Republican critics said the Securities and Exchange Commission's new climate rule will hack away at the SEC's already well-established materiality standard and will mandate disclosure rules that work for Wall Street banks but have little relevance to many public companies across the country. That's according to local leaders from Tennessee testifying during the House Financial Services Subcommittee on Oversight and Investigations field hearing discussing how the SEC's new rule will allegedly harm Americans.?

Read the newest research from The Bond Buyer detailing the public finance industry’s views of the risks and opportunities in 2024.

The Puerto Rico Oversight Board’s proposed Puerto Rico Electric Power Authority plan of adjustment is in the hands of U.S. District Court Judge Laura Taylor Swain; some observers expect an appeals court to overturn rulings underlying the plan, which would force a revision. After final oral arguments were made Monday, Swain said she would release her ruling later.

Long-term municipal bond sales dropped for the second straight year in 2023, but a late year surge of issuance raised hopes for a rebound. Learn more in The Bond Buyer’s annual review of municipal bond market statistics.

Large new issues were well-received and cleared the municipal primary market Tuesday, with several repricing to lower yields. Despite several larger deals entering the primary, the large amounts of cash on hand has yet to push munis cheaper amid UST volatility.

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