For US states, spring marks budget season, a time to check the ledger board and allocate funds to entities and projects within the state—or cut back where needed.
While the new US infrastructure investment bill didn’t have any initiatives directly targeting the municipal bond market, there are still implications for munis in the longer term, according to our Municipal Bond Director of Research Jennifer Johnston. She explains the ramifications for investors in the space.
In May, our municipal bond team published some thoughts on US President Biden’s $2 trillion infrastructure package called “The American Jobs Plan.” As this package makes its way through Congress, the team will provide updates—here’s the latest from our Muni Bond Director Jennifer Johnston.
US President Joe Biden recently announced an ambitious new $2 trillion infrastructure plan, which touches many areas of the US economy. Jennifer Johnston, director of research, Franklin Templeton Municipal Bonds, outlines some highlights of this sweeping legislation, and how it could impact the muni market.
US President Joe Biden recently announced an ambitious new $2 trillion infrastructure plan, which touches many areas of the US economy.
Another round of stimulus totaling $1.9 trillion is making its way through the US economy, with hopes it will trigger a sharp rebound from the ravages of COVID-19.
Apart from some high-profile downgrades, the muni credit markets finished 2020 buoyed by breakthrough vaccines and signs that state and local tax collections were better than anticipated.
In coming years, US Congress and the Biden administration could implement spending programs and tax reforms at the national level that trickle down into state and local government policies too. Our Katie Klingensmith joined Muni Bond Team Research Director Jennifer Johnston to discuss the potential implications for the municipal bond market, against a backdrop of COVID-19.
Once upon a time, US municipal bonds were generally considered less risky than corporate bonds. Backed by the full faith and credit of state governments, investors had confidence they would receive their principal plus interest without fail. Times have changed.