The Impact Of The Pandemic And The Feds Muni Program On Illinois Muni Yields
The Impact Of The Pandemic And The Feds Muni Program On Illinois Muni Yields We estimate a simple model in which variations in Illinois daily municipal bond yields are explained by high-frequency indicators summarizing economic and public health conditions in Illinois, as well as key changes in the Federal Reserve’s Municipal Liquidity Facility (or MLF). We find that the MLF appears to have reduced Illinois muni yields by more than 200 basis points. The Covid-19 pandemic put finances of states and municipalities across the country under severe stress. This stress derived both from reduction...
Source: econintersect.com