Today, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin virtually testified before the Senate Committee on Banking providing a quarterly update on the Main Street Lending Program and the Municipal Liquidity Facility as required by the CARES Act. *The BDA continues to be active with the Fed and all letters can be found here.…
Category: Muni Market Advocacy
Advocacy during the Covid-19 crisis
New York Fed Releases Application Materials for the Municipal Liquidity Facility
The Federal Reserve continues to take steps to operationalize the Municipal Liquidity Facility, today releasing asample applicationand form documents and certifications with detailed information for potential issuers who wish to sell eligible notes to the MLF. The Municipal Liquidity Facility Application materials can be found here. This follows last weeks Federal Reserve announcement of the release of the…
Fed Update: PFM No Longer Assisting Fed Municipal Liquidity Facility
We reported earlier today on the Federal Reserve Bank of New York’s announcementthat they are prepared to begin accepting Notices of Interest from issuers who may intend to use the Municipal Liquidity Facility, the Fed’s emergency program to buy cash flow notes from municipal issuers. Also in this mornings announcement is that the Fed has chosen…
The Washington Weekly Update
New Stimulus-Same Politics Legislative Recap: Following weeks of discussion around a potential 4th stimulus package, House Democratic leadership made good on their promise to provide substantial direct funding to state and local governments, while working to appease all factions of the House Democratic Caucus, resulting in a robust $3 trillion dollar package. The bill was…
New York Fed Releases Notice of Interest for the Municipal Liquidity Facility
The New York Fed today released a Notice of Interest (NOI) for Eligible Issuers to express interest in selling notes to the special purpose vehicle (SPV) Municipal Liquidity Facility LLC. Filling out the notice of interest is the initial step for an Eligible Issuer to provide eligibility information to the SPV for review. An Eligible Issuer should…
Update: House Stimulus Bill Includes Fed Municipal Liquidity Facility Modifications
This week, House Leadership released the HEROES Act, a stimulus measure aimed at helping stabilize state and local governments through direct funding. The bill also includes a provision that would modify the Federal Reserves Municipal Liquidity Facility. The modifications include: DC would be treated as an eligible direct issuer; The maximum term of MLF loans would…
Municipal Liquidity Facility Update: Facility Nears Primary Market Activity Fed Not Yet Planning for Secondary Market Activity
While the Federal Reserve continues to prepare the Municipal Liquidity Facility for primary market purchases, at this time, the facility remains non-operational. All indications from the Fed are that the facility will soon become operational in the primary market, but following the release of key pricing details yesterday, it seems the Fed is following Congressional…
Fed to Begin Secondary Market Corporate Credit Facility Purchases Today
The New York Fed announced that the Secondary Market Corporate Credit Facility will begin making purchases of ETF’s today. It is expected that the Primary Market Corporate Credit Facility will become operational in the coming days. *The BDA recently wrote in favor of the SMCCF. The recommendations can be viewed here. The notice can be viewed here.…
Fed Announces Key Pricing Details for Municipal Liquidity Facility
The Federal Reserve continues to prepare the Municipal Liquidity Facility for purchases, including today announcing key pricing details for the program. The new details, including the pricing table can be viewed here. Pricing Details Tax-Exempt Eligible Notes: If interest on the Eligible Notes is excluded from gross income for federal income tax purposes, pricing will…
BDA Urges Congress to Support Muni Provisions in Potential Stimulus Package
As Congress begins deliberating a potential “stimulus 4“ legislative package, the BDAtoday submitted comments to both House and Senate leadership, calling for support of state and local governments through direct funding, and pressed for support of the municipal market by enacting: The reinstatement of advance refundings; Raising the BQ debt limit; and A direct pay…