BDA Op-Ed: The Fed Took a Big Step Into the Municipal Market, But it Won’t be Enough

Today, the BondBuyer featured an op-ed by BDA’s Michael Decker on the Fed’s recent actions in the municipal market including the creation of the Municipal Liquidity Facility(MLF).

The op-ed can be viewed here.

In the piece, the Fed’s positive initial steps are discussed, while also potential problems caused by limiting access to the MLF to only the nations largest issuers. The op-ed also addresses the question of who bears the credit risk for the “downstream” local government borrowers who access the Fed facility indirectly through a state and the need for additional federal help to cover lost revenue at the state and local level.

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