March 25, 2020—The flurry of recent news suggests a grim picture for employment in the near term as mitigation measures are put in place to control the spread of COVID-19, including social distancing and temporary business closures. These have led to a significant number of workers furloughed or laid off as business revenues have dropped drastically for a number of industries, particularly in the service sector.
The Federal Tax Code permits the postponement of certain tax deadlines by reason of Presidentially declared disaster actions. On March 13, 2020, President Trump issued an Emergency Declaration (COVID-19 Emergency) to the Treasury Secretary to provide relief from certain specific tax deadlines. Please note this only applies on the Federal level. State income tax deadline and payments may still be due, although some states have already granted similar extensions.
March 23, 2020—It’s been a bruising few weeks in financial markets, with virtually no asset class left unscathed. Investment-grade municipal bonds—typically thought of as a safe haven that should help weather volatility in riskier asset classes like equities—have seen a significant amount of volatility. We have taken note of a historic buying opportunity within the municipal bond market, and we have adjusted our portfolio allocations to take advantage of any price dislocations.