Fed Drops Municipal Backstop Pricing by 50 Basis Points, Still Very High

Yesterday, the U.S. Federal Reserve announced in a press release it reduced the interest rate spread charged to qualified issuers to access its Municipal Liquidity Facility (MLF) by 50 basis points. In the release, the Fed indicated, “Today’s changes will ensure the MLF continues to provide an effective backstop to assist U.S. states and local governments as they weather the pandemic.”

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