How severe a financial hit New York City will take during the COVID-19 pandemic is as much of an unknown as the degree of virus spread.
With a state budget deadline on the horizon, NY Gov. Andrew Cuomo is requesting revised revenue estimates that factor in the economic realities of fast-spreading virus.
The municipal market was hammered Wednesday by the COVID-19 pandemic with a more than quarter point correction in AAA benchmarks, issuers pulling deals off the shelves and more reports of pricing and evaluation confusion.
Chairman Patrick Foye says that the outbreak has no material effect for now, and the authority promises to continue timely disclosure.
As fear and uncertainty over COVID-19 rapidly grow, it has sent yields for both municipals and Treasuries to never before seen low levels — begging the question if we could see zero or negative yields here in the States?
The world remains on edge about the rapidly spreading COVID-19 and those fears once again have Treasury yields digging down even deeper. COVID-19 fears have now impacted fund flows, as municipals suffers outflows for the first time in 60 weeks.
Looming state budget cuts combined with the COVID-19 threat could have a negative impact on NYC's economy.
The municipal bond market is in for another action-packed week, with above-average issuance and COVID-19 still spreading rapidly.
Taxable bonds and COVID-19 are two of the main catalysts that helped February municipal bond volume ascend to its highest level since at least 1986.
Municipal bond yields were unchanged at record low levels, according to late reads.