A wary municipal market ponders post-election threats
The Republican sweep poses a "material" threat to the tax exemption and protecting it should be the market's top priority, said Matt Fabian, partner at Municipal Markets Analytics Inc.
"The municipal lobby has bulked up," Fabian said. "The muni lobby has improved the data that they have, they have improved the arguments for preserving the [tax] exemption and I think they've been preparing for this potential scenario for months," Fabian said. "So if [the tax exemption] can be defended, they'll do it."