Municipal Issuers Rushing to Market Before Election “Month”

  • We saw $1.005 billion flow into municipal funds per Lipper data released last week. This was the 18th consecutive week of flows into municipal mutual funds.

  • We are expecting heavy primary market issuance this week of over $10 billion.

  • It seems issuers are rushing to complete financings before Election Day, Nov. 3, 2020.

  • Fareed Zakaria says the media should prepare observers for an election "month" because results may not be final on election night.

  • It is possible that the 2020 election could create a municipal market dynamic that combines elements from 2000 and 2016.

  • It took weeks after Election Day in 2000 before the Supreme Court finally helped name George W. Bush as president.

  • A month after the 2016 election municipal bond market demand weakened, and the 10-year AAA MMD benchmark rose by almost 90 basis points.

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