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Bond Market Tax Haven Shrinks as Corporate-Style Munis Surge

  • Taxable muni sales jump to highest in decade on refinancings
  • CreditSights says tax-exempt debt sales may keep falling
Updated on

America’s municipal-bond market is becoming less of a tax haven.

Interest rates have sunk so low that states and local governments have been flooding the market with bonds that aren’t tax-exempt, allowing them to revive a refinancing tactic that was stripped of its subsidies by President Donald Trump’s 2017 tax-cut law or sidestep federal rules on how the proceeds can be spent.