Bond Market Unlikely to React Strongly to Tax Plan: Analysts
By Allyson Versprille
President Donald Trump’s tax plan is unlikely to trigger a frenzied municipal bond sell-off even if it includes provisions that negatively impact the exempt bond market, analysts told Bloomberg BNA.
Conflicting messages on tax reform from high-level officials in Trump’s administration have desensitized the market, Citigroup Inc. analysts Vikram Rai, Jack Muller and Loretta Bu said in an April 24 note to clients. “Now investors seem to shrug off statements from the administration regarding tax-reform” though they haven’t completely discounted that an overhaul could happen eventually, they said.Read More