MarketScreener
States Expected Covid-19 to Bring Widespread Tax Shortfalls. It Didn't Happen.
n March 2020, the municipal market ground to an unprecedented halt as investors spooked by the pandemic's impact on state and local governments pulled out at rock bottom prices. Even gold-plated borrowers had trouble finding buyers. But prices bounced back quickly after an unprecedented pledge to buy up municipal debt, and borrowing grew cheaper than it was in 2019.
Public officials refinanced outstanding bonds and used credit to pay the bills. At least a quarter of state and local government bond issues of $100 million or more between August and December were aimed at filling budget gaps, according to a study from The Pew Charitable Trusts and Municipal Market Analytics. The issuance included about $4 billion in coronavirus emergency bonds from the state of New Jersey.