In the second quarter issue of our commentary we feature:

  • Intimations of municipal splendor by Stephen Winterstein.
  • Municipal market performance in perspective? by Robert Collins.
  • A look at Connecticut, Illinois, and Puerto Rico by three of our research analysts.

For municipal bond market participants, “splendor in the grass” harkens back to the sweet pre-election promise known as tax reform.

Since President Trump has taken office—and, after an initial flurry of Obama-era agreement reversals, followed by a brief period in which he attempted to get his legislative sea legs—it seems like one thing after another has stood in the way of the tax code actually being reformed.

The second quarter was particularly busy. Commencing in April, the fourth estate was humming with stories about North Korea’s overtures, France’s presidential race, and Prime Minister May’s call for a snap election. By mid-May, President Trump’s Saudi Arabia trip and arms deal, and the firing of FBI Director James Comey provided adequate distractions for domestic fixed income markets.

Please see important disclosures at the end of the article. 

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