Groups representing dealer firms and issuers both weighed in positively Monday evening after the Fed’s afternoon decision that it will expand its Municipal Liquidity Facility in both scope and duration.
Demonstrating compliance with pricing and supervision rules has been challenging in the COVID-19-influenced market.
BDA told Fed Chair Jerome Powell that two existing programs could help the muni market overcome the impact of the virus.
“Anybody who’s having an event between now and May is considering what to do about it,” said Mike Nicholas, CEO of the Bond Dealers of America.
Congressional offices may decide to minimize or ban face-to-face meetings as virus concerns grow.