Taxable boom may und ...

Taxable boom may undermine the case for the muni tax exemption – The Bond Buyer

December 6, 2019 | by Butler Snow

Butler Snow attorney Dee P. Wisor was recently mentioned and quoted in an article by The Bond Buyer.

The following is an excerpt from the article:

Dee Wisor, a bond attorney at Butler Snow in Denver and the immediate past president of the National Association of Bond Lawyers, said he views the taxable explosion as the direct result of the TCJA and the low interest rate environment and said the market will not lose sight of the importance of the tax exemption.

“If tax-exempt advance refundings were still available, I imagine issuers and conduit borrowers would still be doing tax-exempt advance refundings and the volume of taxable deals would be substantially lower,” Wisor said.

“As the spread between taxable and tax-exempt rates returns to historically normal levels, the tax-exemption will remain important for issuers and conduit borrowers in managing their debt portfolio, in part because in normal market conditions taxable rates may not allow issuers to achieve the required level of savings in an advance refunding. So NABL, and I imagine others, will continue advocating for the preservation of the tax exemption generally and the restoration of tax-exempt advance refundings specifically.”

Read the article in its entirety here.