EconPapers    
Economics at your fingertips  
 

Municipal Debt Markets and the COVID-19 Pandemic

Marco Cipriani, Andrew Haughwout, Benjamin Hyman, Anna Kovner, Gabriele La Spada, Matthew Lieber and Shawn Nee

No 20200629, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: In March, with the outbreak of the COVID-19 pandemic in the United States, the market for municipal securities was severely stressed: mutual fund redemptions sparked unprecedented selling of municipal securities, yields increased sharply, and issuance dried up. In this post, we describe the evolution of municipal bond market conditions since the onset of the COVID-19 crisis. We show that conditions in municipal markets have improved significantly, in part a result of the announcement and implementation of several Federal Reserve facilities. Yields have decreased substantially, mutual funds have received significant inflows, and issuance has rebounded. These improvements in municipal market conditions help ensure that state and local governments have better access to funding for critical capital investments.

Keywords: state and local governments; municipal debt; MLF; municipal debt markets; COVID-19 (search for similar items in EconPapers)
JEL-codes: E58 E62 H0 (search for similar items in EconPapers)
Date: 2020-06-29
New Economics Papers: this item is included in nep-fmk, nep-mac and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://libertystreeteconomics.newyorkfed.org/2020 ... vid-19-pandemic.html Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:88240

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Liberty Street Economics from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().

 
Page updated 2025-03-31
Handle: RePEc:fip:fednls:88240