Municipal Bond Forum

Home > Municipal Bond Forum > How new HQLA bank rules help the muni market

How new HQLA bank rules help the muni market


You have often written about the dearth of munis available for individual investors to purchase.  Won’t new bank rules regarding high quality liquid assets (“Reversal on Bank Rules a Win For Muni Bonds”) make things even worse?  Why would you applaud a big new investor that can purchase much more and make things even more scarce?

R.K., Texas


James A. Klotz responds:

Rule changes for financial center banks we referred to in the article are good for the overall municipal bond market as they will provide valuable liquidity to individual investors seeking to liquidate their holdings.

As far as the availability of municipal bonds, issuance picks up and slows down as a result of various market forces. However, we’ve never witnessed a situation in which investors were unable to acquire quality bonds. We’ve helped clients find the bonds that suit their investment objectives for more than 40 years.

May 31, 2018

Start here.

Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.

    This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.