LCR revisions benefit muni issuers of VRDBs, Moody's says

Moody's Investors Service said that municipal issuers of variable-rate demand bonds will benefit from the decision by the Basel Committee on Banking Supervision to revise the liquidity-coverage ratio. "These revisions are credit positive for municipal issuers of variable-rate demand bonds (VRDBs) and similar securities because they will not likely result in banks increasing the cost or limiting the availability of credit facilities as much as what would have likely occurred under the committee's previous plan," Moody's analysts wrote in a report.

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