“Push the Pause Button” Elevating the Level of Political Risk
The level of political risk influencing the municipal bond market continued its ascent yesterday. We previously identified political risk as being one of the atypical credit risks currently facing the municipal bond market just CARES Act was signed into law. So far, the reality is close to meeting our expectations, unfortunately. The recent statement about state bankruptcy that has been getting the most attention is not the most important takeaway from the last few days.