Since Basel III first implemented rules impacting bank ownership of municipal in regards to whether or not the asset class was considered “high-quality” and “liquid” one of the U.S. regulators overseeing the market had to create a liquidity facility to support the market and two banks that failed would be covered under so-called Basel Endgame. This looks to be slightly problematic for the municipal bond market as we review new proposed rules.

It also looks to have a particular acute impact on smaller, regional communities and those of lesser economic means. Read our take here.